LoginPage 1: Introduction
Philips was established in 1891 and made lightbulbs - a simple product. Throughout the years the company increased its portfolio into technology products that became too complex for most users. When Philips realised this, it decided to make life easier and so launched a brand repositioning all about simplicity.
The term positioning refers to where products and brands are placed in a market...
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Page 2: Creating a repositioning strategy
The stages involved in moving a product are:
carrying out research to find out the weaknesses of the starting position
researching a right direction to take
making plans and taking actions to improve the position.
A problem that faced Philips in 2003 was that its media investment was rather unfocused and was spread thinly between too many different product segments. The table shows...
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Page 3: Creating consistency and direction
In order to move forward it was vital to identify the key issues. The problem facing the company was lack of constancy and direction. Resources were being spread too thinly across too many products, with developments in too many countries. Decision making within the wider Philips organisation had become patchy. This was plain to see - there were too many products, too many markets and a lack of...
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Page 4: Illustrating the strategy - products
We can show the new repositioning strategy by taking the example of some of the high-tech products that Philips has just worked on. A good example of this is Senseo®. Senseo® Coffee System has been developed through a partnership between Philips and Sara Lee, a Fast Moving Consumer Goods (FMCG) supplier.
The key aspects of Senseo® are:
cool design
easy-to-use technology
amazing...
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Page 5: Communicating
At the heart of business success is good communication. This means sending messages from individuals or organisations to others (receivers). Good contact involves:
communicating a brand promise, in this case 'sense and simplicity'
in a clear and easy to understand way
to the right target audience
using the right media.
There are a number of ways that Philips does this:
As it is a...
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Page 6: Conclusion
'sense and simplicity' is the brand promise for the Philips organisation. The need for change was seen as a result of customer research. Products and processes need to be made with the customer in mind. Modern consumers want to be able to use and benefit from high-tech products. They also want to find that these products are simple and easy to use.
Philips has therefore transformed all...
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