BRAND

MANAGEME
NT
CASE STUDY
ON
PHILIPS
CREATED BY
MADHAVI TAK – 21020348010
ADITYA KUMAR – 21020348001
JITENDRA PATIL – 21020348009
GAURAV TIWARI – 21020348026
ANURAG KAPOOR – 21020348005
SHUBHI RAJVANSHI – 21020348025
 CASE 1 - BRAND REPOSITIONING AND COMMUNICATIONS

• This Case Study examines the way in which Philips has repositioned its brand on the basis of two main characteristics:
‘sense and simplicity’ – i.e. everything is designed to meet customers’ needs and is based on consumer insights.
• Philips conducted a market research to explore more about is brand position. Philips involved more than 1650
consumers and 180 customer companies around the world to make sure that it repositioned its brand in an appropriate
way. Philips also undertook BEAT (Brand Equity Assessment Tool) research involving 26,000 respondents.
• The result of Philips’ market research showed that the core target group typically disliked the unnecessary hassle
created by the technology. The research showed that simplicity is what people expect of technology.

• The findings indicated that the company had substantial strengths based on the reliability of its products and the belief
that the company develops new and exciting products.

• It believes that somewhere along the way the promise of the Technology Revolution to make our lives easier, simpler
and better is not being delivered. With this in mind, Philips is continually bringing new and exciting products into its
portfolio, which at the same time are simple to use.
1. What were the key objectives and Outcome (findings) of the Market Research conducted by
Philips?
Objectives
The Research was designed to:
 Enable Philips to have a better understanding of its existing position in the market
 Identify and test new routes for moving the brand forward
 Check the effectiveness of the chosen route.
The research examined Philips' performance versus other Brand’s average performance in the market.
Outcomes
1. Regarding the customers, the research revealed that the core target group typically disliked the unnecessary hassle
created by technology. The research showed that simplicity is what people expect of technology.
2.  Presence of Market Gap: The research also revealed that there was a clear market gap as Apple was the only company
sticking to the idea of simplicity. Also, Apple did not have a wide product range.
3. Strength in Philip’s positioning: Regarding Philip’s positioning, the research revealed that:
 People valued that Philip was creating new and exciting products
 People felt that Philips’s products ate reliable.
4. Weakness in Philip’s positioning: The research also indicated towards the following weakness in Philip’s brand image:
 Consumers felt that Philips does not lead on innovation
 Professionals felt that Philips did not have a clear sense of direction as some of its rivals have.
5. Aspirations for Philips: Aa major outcome of the research was that it became clear that Philips needed to develop a
clear and focused position of its brand.
2. Share your understanding on the Brand Positioning and Brand Communication aspects of
Philips detailed in the Case?
Initial Brand positioning:
Struggling with Brand Positioning:
The Case indicates that initially, Philips was struggling with its brand positioning. Consumers felt that Philips does not
lead on innovation. Professionals felt that Philips did not have a clear sense of direction as some of its rivals have.
The new Brand positioning:
1. The new positioning for Philips revolved around
 Putting the customer first and becoming more market led, driven by the needs of customers.
 Promising customers a more comfortable and more straightforward relationship with technology and Philips.
2. Philips' new position 'sense and simplicity' is based on three essential pillars, that:
 Products are designed around you'.
 Products are easy to experience'.
 Products are advanced'.
 
Communicating the brand positioning
 1. Repositioning actions: Philips tried to:
 Make sure that products and services are convenient and easy to experience
 Products continue to deliver the benefits associated with innovation
2. Target Group: Phillips aimed to communicate its repositioning to its core target group. The target group was made up
of affluent decision makers in the 35-55 age group and constituted 20% of its customers who did 80% of the buying.
3. Communication details: Philips sought a new approach to communicate its positioning:
Language: Philips wanted its language to be different from other companies. It wanted the language to be fresher, cleaner
and more human.
Advertisement: Every advertisement and insert that Philips used in the campaign told part of a story. One advertisement
reinforces another.
Medium and location: The advertisements were run via broadcast, print and online mediums across the European
countries Netherlands, Germany, France, Italy and in United Kingdom, the USA and China. It also made use of the
Internet, face-to-face launches and poster campaigns.
Audience: Philips wanted to go beyond the standard audience (customers) for communicating its brand positioning. I
included Philips' employees, the media and the marketing community, through integrated PR activities and an advertising
campaign.
 Case 2 - Philips can live up to their innovation promise​
• We think Philips can surely live up to their innovation promise. ​
• Case study says, “A company with a long history of innovation can confidently claim they are innovative and back it up.
After innovating for over 120 years, Philips has the proof. And just because they have not communicated this value
proposition very well in the past, that doesn’t mean they can’t do it today. That’s why the Innovation and You campaign
makes so much sense for Philips. They can actually deliver on the promise of innovation because that’s what they
have been doing for a very long time.”​
• As a leading health technology company, Philips has innovated and improved on people’s health and healthcare
outcomes as well as making care more and more accessible and affordable. They claim to improve the lives of 2 billion
people a year by 2025. ​
• It is their strategy to lead with innovative solutions that combine systems, smart devices, informatics and services, and
leverage big data – helping our customers deliver on the Quadruple Aim (better health outcomes, improved
patient experience, improved staff experience, lower cost of care) and helping people to take better care of their health
at every stage of life.
• They strive to deliver superior, long-term value to our customers and shareholders, while acting responsibly towards our
planet and society, in partnership with our stakeholders.​
​
 Case 2 – Is innovation one of those words that cheapen a
business today​
• We do see overuse of innovation in todays world, especially in advertising, marketing.

• Companies use innovations in their campaigns to create a fancy image on customers ​

• The overuse and generalization of the term ‘innovation’ has led to loss of understanding of what can be called
‘innovation’, as this buzzword is being used everywhere.

• The Oxford English Dictionary defines innovation as “a new method, idea, product”, and to innovate as the process of
making “changes in something established, especially by introducing new methods, ideas, or products”

• For Philips though, innovation does fits on the company branding – Philips has been putting out innovative consumer
products in markets since long, especially in Gadgets, lights and has created a name for itself.
• Even though the market is filled with companies claiming their innovation in their tagline,products.What separates the
truly innovative company to the one which merely says it is authenticity.

• When we see proof , we tend to trust ,and become loyal customers to the brand.
​