Philips Sense and Sensibility Case Study Assignment PDF

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SUBJECT:

Marketing Management MKT402

TOPIC:

Philips Case Study (Assignment 2)

SUBMITTED TO:

Mr. Nauman Tirmizi

SUBMITTED BY:

Aqsa Hafeez 20181-23738 M. Abdullah Jawed Qureshi 20181-23516 M. Talha Fehmi 20181-23647 M. Uzair Qasim 20181-24029 R. Qasim Ali Mehdi 20181-23431 Sadaf Imtiaz 20181-23754 S. Huzaifa Ahmed 20181-23878

DATE:

05th November 2018

ROYAL PHILIPS Royal Philips, originally Philips Electronics, is a Dutch multinational company founded in 1891 by the father and son duo, Frederik and Gerard Philips. With its headquarters in Amsterdam, Philips currently focuses its operations in the areas of healthcare and lighting. Royal Philips initially began operations with the manufacture of light bulbs and grew into one of the largest energy conglomerates in the world. In 2014, Philips was reported to have been employing 74,000 people with operations in 100 countries. In 1998, it was awarded the Royal honorary title by Queen Beatrix of the Netherlands, and in 2013, removed the Electronics from its name in favour of Royal Philips. The company is renowned for developing the ‘compact audio cassette’ and co-developing the ‘compact disk’ with Sony.

BRANDING OF PHILIPS • • • • •

The branding of Philips started when Anton created a logo by using initial letters “Philips & co”. In 1896, they used postcards showing Dutch national customers as a marketing tool. In 1925, Philips introduced symbol that featured waves and stars. In 1938, the logo was redesigned with the waves and stars enclosed in a circle inside a shield. In 1995, Philips initiated a new branding campaign, “Let’s make things better”.

Evaluate Philip’s “Sense and Simplicity” strategy. What are the risks the company faces in using this tagline? Philips’ Sense and Simplicity marketing campaign defines its focus for the new world where the modern consumer values ease of use and a seamless user experience. The modern consumer wants technology to make their life easier without getting in the way and does not want to spend too much time setting up new purchases or sift through extensive manuals to get something going. The new tagline is simple and inclusive, which is important for Philips as it now has a presence in several countries around the world. Having such an expansive presence means that it’s marketing strategy needs to be flexible and needs to vary from country to country in order to fulfil local needs and demands; the tagline, therefore, also has to be flexible enough to envelope its varying marketing strategies across the globe. In making its tagline generic so it applies to all of Philips’ market-share in every country, Philips has also made it vague, which is an issue. Sense and simplicity, as a marketing objective, can be interpreted in various ways; consumers can be left wondering what exactly this ‘sense’ in sense and simplicity is, what is Philips referring to? The use of the term ‘simplicity’ is also open to interpretation; is it simplicity of layout and design that Philips is going for, or simplicity of use? If consumers can’t interpret what Philips wants them to interpret, and understand what Philips wants them to understand, their expectations may vary, and might even end up being so different that the company finds itself unable to fulfil them with the products it is currently offering. This could lead to dissatisfaction among consumers.

What strategies can Philips follow to ward off competition from Japanese manufacturers of consumer electronics? Japanese manufactures have quickly captured the market share of other electronics manufacturers and are dominating the market because of their low manufacturing costs, which allow them to keep their prices low. In order to re-capture its market share or avoid losing it to Japanese manufacturers it can consider the following strategies: → Focus on providing value for money. → Emphasise in its marketing campaign that the products it offers are of a quality that justifies their price-point. → Focus on simplistic designs and ease of use. → Provide user manuals in different languages to attract more consumers. Instruction manuals in the local language of the countries where its products are being shipped to will make Philips products more attractive to local consumers. → Market its products to clearly define consumer expectations and ensure that the advertisements are not as vague as its ‘sense and simplicity’ tagline. Consumers should be able to understand exactly what the company wants them to and shape their expectations in accordance with the company’s offerings....