Marketing Strategy Of Philips – Philips Marketing Strategy

Headquartered in Amsterdam, Phillips is a multinational company and is one of the world’s largest electronics company and is currently focused in the area of lightning and healthcare. Phillips was founded in the year 1891, by Gerard Phillips. Phillips currently employees around 75,000 people spread across 100 countries.

Phillips is technology focused and company and aims to improve health and enabling better outcomes across the continuum of health from prevention to healthy living, diagnosis to treatment and home care. Phillips has over 110 production facilities spread across 100 countries and has a strong R&D department and leverages advanced technology with deep consumer insights to deliver solutions across home care and consumer health.

Mission:

To improve people’s lives through meaningful innovation

Vision:

At Philips, we strive to make the world healthier and more sustainable through innovation. Our goal is to improve the lives of 3 billion people a year by 2025. We will be the best place to work for people who share our passion. Together we will deliver superior value for our customers and shareholders.

Tagline:

Unlock the future with the power of light

Segmentation targeting and positioning in the Marketing strategy Phillips

Segmentation:

Phillips under demographic segmentation targets all the ages and people with higher and middle income. Phillips has also focused on the rural market of India. The focus, however, has been mainly on the urban areas of India.

Phillips provides products in the market in vast ranges and the product portfolio is designed to attract the attention to vast ranges of clients. The product ranges are so extensive that almost everyone can be a potential consumer of Phillips and mostly those people looking for reliable products.

Target:

The target market of Phillips is wide and it differs in age, culture, status, etc. With products ranging from home appliances to beauty appliances, medical instruments. Phillips targets consumers that are not conservative and are not skeptics.

It targets the consumers that are willing to try new innovative products that Phillips comes up with. It mostly targets the younger generation who are more open to experimenting on new products and aims to satisfy them with the brand promise that Phillips tries to fulfill.

Positioning:

With the branding and positioning strategy, namely “sense and simplicity” it aims to provide innovative, simple and ready to use products. The company has a belief that innovation is meaningful only if it satisfies people of their unmet desires and needs.

The products are advanced and are designed around the needs of consumers. The company has positioned itself as a brand that aims to improve people’s lives through innovations that are meaningful.  The R&D efforts are also aligned according to the needs of the consumers. Phillips has a built a brand image that allows consumers to trust its products.

 BCG matrix in the Marketing strategy of Phillips

For Phillips, the personal care business falls under the question mark category because the company makes very little profit from this division. The star category in the BCG matrix is the healthcare business and home appliances division because the company gains significant profit from this division and is putting all its worth into its growth.

The cash cow is the lighting business because Phillips is the global market leader and has recognized expertise in this division and the company gets stable profits from this division.

Distribution in the Marketing strategy of Phillips

Philips has developed an official website where the consumers can find and purchase the desired product from anywhere in the world. Phillips has used the strategy of dispatching good through direct sales over the internet.

It has also collaborated with e-commerce sites like Amazon and Flipkart to sell Phillips products. According to research, the internet has been a major channel of distribution as well as an information collection source for Philips.

Phillips has found that the retailers, departmental stores, distribution centers, and internet are important tools to access the consumers. A new strategy has been applied by Phillips to distribute the products by allocating small territories to the distributor ensuring a firmer grip.

Brand equity in the Marketing strategy Phillips

The brand promise of Phillips is to cultivate innovation and has its main focus on the consumers and their needs. The brand focuses on the magic of innovation and makes a meaningful difference in the lives of people.

Their long-standing promise of making people’s lives better through innovation has been their primary focus. The consumers believe in the brand and what it stands for. Phillips is a leader in patient monitoring, health informatics, diagnostic imaging, and image-guided therapy.

The brand name of Phillips is very strong and the consumers believe that Phillips makes healthy, useful and eco-friendly products. The excellent quality of the products are well known among the users and thus the brand value of Phillips has been increasing and is one of the world most valuable brand ranking #43  with increase it’s brand value form USD 11.5 Billion to 12.1 billion.

Competitive advantage in the Marketing strategy Phillips

Strategy and focus:

The main focus of Phillips is to make the world more sustainable and healthier through innovation and has an ambitious goal to improve the lives of people of 3 billion people a year by 2030. It aims to lower the cost of care, and improving the work life of care providers, enhancing the patient experience and improving health outcomes.

Phillips aims to provide high quality and live enhancing products to its consumers and this focus has helped Phillips become one of the worlds most trusted and valuable brands.

Technology focus:

Phillips technologies aim to facilitate healthy living and with the help of cloud-based technologies, Phillips has created more effective and low-cost health solutions for the consumers. In today’s marketplace, Phillips is spearheading environmentally progressive and innovative solutions.

It has been the foremost innovator in the lighting technology which has enabled newer and more efficient use of lights transforming the world both practically and visually. With their main focus on meeting customers unmet needs.

This focus on technology has become a point of differentiation for the brand.

Strong R&D:

Phillips has a strong focus on R&D and has made huge investments for it. Phillips has maintained around 7 R&D centers to carry out the research work and development of new innovative products. Phillips further plans to expand its global R&D center in Bangalore.

The Phillips Innovation campus has been established to focus on the development of localized products and improvement of health care systems in India. In India, the lighting business contributes to the major portion of revenue for Phillips which is followed by revenue from healthcare and consumer lifestyle business.

Competitive analysis in the Marketing strategy of Phillips

The main competitors of Phillips are LG Electronics, RF Micro Devices, General Electric Company, and Samsung Electronics, etc. Samsung is a big name in the electronics industry and is one of the main competitors as Samsung is also equally dedicated to innovation as Philips is Samsung has introduced excellent products and has been operating successfully in more than 80 countries.

LG is also a major player in the electronics industry and it cannot be underestimated as its markets share has been improving since the past couple of years. To stay ahead of the competition, Phillips should continue its focus on innovation and quality.

The electronics industry is now getting crowded with new players and Phillip’s focus on innovation might help create a point of differentiation for the brand.

Customer analysis

The main consumer of the brand are the youth that are not scared in experimenting into new products and want technology to make their life much easier. The consumers are found to be loyal to the brand are the ones that have gain trust fully from Phillips.

The consumers find great value when they find durable and are prepared with fine quality products.  The consumers of Phillips are not scared to experiment new tastes, people and have a different perspective. 

Promotion Strategy

The brand promotes its products through the number of mediums, Phillips is seen promoting its products via radio, print media, and internet for advertisements. The company is big and has maintained its unique PR strategies and campaigns.

During the product launch of “Air Fryer”, they promoted the product as a healthier option for cooking and advertisements were seen extensively on social media and television.

Another famous promotional campaign was for the Aurea TV where they used beautiful models to promote the TV the theme that was “seduction by light”. The website has also been maintained well where the detail product specifications are provided to the consumers so that they are aware of the complete ranges of the products and they can check the quality and build trust before buying the product.

Liked this post? Check out the complete series on Strategies