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 coffee.
Between 2001 and 2005 more than 10 million of these coffee machines were sold in eight countries - an impressive total. The product embodies what Philips is trying to achieve in everything it does. This is to join an exciting state-of-the-art product with simplicity. The coffee makers are combined with Douwe Egberts Senseo® coffee pods to give customers the taste they want.
Last year, Philips launched its own Simplicity Event. This provided Philips with an opportunity to share, with stakeholders, how far it has come in its commitment to 'sense and simplicity'. Products that already deliver this promise were exhibited, together with living prototype demonstrations of how Philips envisions simplicity in the future.
Senseo® is one example of 'sense and simplicity' in action, other living prototypes include:
- 'Chameleon' - a lamp shade that changes to match any colour you show it.
- 'In Touch' - a mirror that transforms into a touch screen message centre, providing an alternative to leaving messages on answer phones or stuck on a fridge.
- 'Momento' - a glass ball, small enough to fit into the palm of your hand, offering a completely new way to share video memories. Once shaken its built in sensors will prompt the existing clip to dissolve and another to appear.
As well as supplying consumer products that are simple and easy to use, Philips also applies 'sense and simplicity' to all areas of its work.
For example, in the world of medical products it has created the AmbientExperience so that medical scans are less frightening for the patient. In the Ambient Experience suite, a patient can choose a relaxing visual that can be projected onto the ceiling and doctors say that this ambience helps relax the patient and makes the scanning process easier and quicker.
Philips is embedding 'sense and simplicity' into a wide range of high-tech medical products. 'sense and simplicity' is not just about making new products, however. Easy-to-understand processes are also vital. For example, Philips has invested in a 'Welcome' project. Philips believes that customers should have a pleasing experience from the start. Welcome therefore seeks to make sure that all Philips packaging is simple to unwrap.