Brand repositioning and communications
A Philips case study

Page 0: Introduction

A brand is a product, group of products or company name with a unique, consistent and well-recognised character. The uniqueness can come either from a factual product or from its image - uniquely created by the manufacturer through advertising and packaging. The consistency comes mainly from the uniformity of its quality and performance, but it is also reflected in the advertising and...
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Page 1: Research

Market and product research lie at the heart of any successful business. Market research involves talking to customers to find out what they want and then supporting these findings with product research which involves supplying products with the benefits that customers want. Philips is a global company so the research that it carried out took place on a global scale. Philips involved more...
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Page 2: Findings

The results of Philips' market research was to show that the core target group typically disliked the unnecessary hassle created by technology. The research showed that simplicity is what people expect of technology. This is applicable to a doctor working under pressure in a hospital with advanced medical equipment as well as to a consumer operating a DVD recorder. Simplicity is equally relevant...
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Page 3: Brand positioning

A vision is a clear picture of what you want to achieve. Philips' vision is to produce products that always put the customer first. The challenge facing Philips, therefore, is to better understand what people really need. Philips' new brand positioning is all about promising customers a more comfortable and more straightforward relationship with technology and with Philips. It believes that...
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Page 4: Communicating the brand positioning

Clear communication is essential in business if appropriate messages are to reach the relevant target audience. Philips needs to communicate its new position to relevant customers/ consumers and to the market as a whole. Advertising campaigns designed to communicate its repositioning exercise focused on a core target group, consisting of the 20% of people doing 80% of the buying. The affluent...
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Page 5: Conclusion

Philips has always been associated with value for money high-tech products. However, in the past it would have benefited from having a stronger brand image. The repositioning exercise based on 'sense and simplicity' helps the wider public to better understand Philips as a consumer focused organisation that is continually providing appropriate simple-to-use solutions for everyday needs through...
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