How a brand promise drives change in a multinational organisation
A Philips case study

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Page 2: Creating a repositioning strategy

A responsible strategyThe stages involved in moving a product are:

  1. carrying out research to find out the weaknesses of the starting position
  2. researching a right direction to take
  3. making plans and taking actions to improve the position.

Four product areas and individual demographics

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 just four product areas and the target audiences for each, which were being addressed. In addition Philips' products were marketed under lots of names, using a range of different advertising approaches. It was no wonder that there was great confusion in customers' minds.

The challenge facing Philips, therefore, was to create a clear vision that would help the company to reposition itself and all of its related brands. A brand promise was then set out that is clear and easy to follow. The brand promise is 'sense and simplicity'.

In the current high-tech age, consumersare faced with many hard product choices. What most of us want are clear-cut communications about the benefits that these products will provide for us. This is as true of medical professionals ordering brainscanning equipment for a hospital as it is when you or I want to buy a light bulb, electric toothbrush or cordless kettle.

Three main elementsThis is why the brand promise 'sense and simplicity' is so important to Philips. This entails three main elements:

Philips | How a brand promise drives change in a multinational organisation