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PHILIPS CASE STUDY
1
PHILIPS
sense and simplicity
DIVISIONS
 Philips Consumer Electronics
 Philips Lighting
 Philips Medical Systems
 Phili...
INDUSTRY ELECTRONICS
Founded Eindhoven, 15 May 1891
Founder Gerard Philips
Frederik Philips
Headquarters Amsterdam, Nether...
8/29/2016
4
5
8/29/2016
6
(1910 to 1950s)
 Philips Metal Filament Lamp Factory Ltd. was
founded in Eindhoven in 1907.
 That was followed in 1912 b...
1990 TO 2015
 In may 1990 when company
posted losses of $2.6 billion,top
management launched a major
initiative known as”...
TARGET APPLICATIONS IN THE PROFESSIONAL
MARKET ARE DECORATIVE OUTDOOR AND
SHOP LIGHTING…
9
..creating new lighting
possibilities
10
CASE STUDY
8/29/2016
11
REVENUE
• Globally,Philips derives 34 percent of its revenues from lighting ,in
India,the figure is 58 per cent.
• In Heal...
PHILIPS
GROWTH OVER THE YEARS
1891 1912 1920 1939 1949 1963 1982 2000 2011 2015
ACQUIRED
THE ASSETS
OF PREETHI.-
INDIA BAS...
Solutions
 Philips embarked an improvement
program called BEST (Business
Excellent through Speed and
Teamwork).
 Have se...
STRATEGY OF PHILIPS
8/29/2016
15
8/29/2016
16
…cont’d
RETAIL
Emerging
urbanization ,
population
growth and
new demand.
AUTO
Philips
offers best-
in-class
lightning
solu...
HEALTHCARE
Supports hospitals and
diagnostic centre
medical equipments
providers for experience
of care
Anesthesia
Cardiol...
Questions
raised at
the end of
mini case
Q.1 Evaluate Philips "sense and simplicity" strategy. What are the
risks the company faces in using the tagline?
Strategy ...
Q2. What strategies can Philips follow to ward off competition from
Japanese manufactures of consumers electronics?
The ma...
Summary
BMW’s
Logo
Thank you
23
Created by Kouts Kumar, IET Lucknow,
during a marketing internship under
Prof. Sameer Mathur, IIM Lucknow. 24
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Philips Mini case study

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It is a Philips case study based on PHILIP KOTLER KEVIN LANE KELLER Book

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Philips Mini case study

  1. 1. PHILIPS CASE STUDY 1
  2. 2. PHILIPS sense and simplicity DIVISIONS  Philips Consumer Electronics  Philips Lighting  Philips Medical Systems  Philips Domestic Appliances and Personal Care  B2B 8/29/2016 2
  3. 3. INDUSTRY ELECTRONICS Founded Eindhoven, 15 May 1891 Founder Gerard Philips Frederik Philips Headquarters Amsterdam, Netherlands Area served Worldwide Key people Jeroen van der Veer(Chairman) Frans van Houten (CEO) Products Home appliances Lighting Medical equipment Revenue €21.39 billion (2014) Operating income €486 million (2014) Profit €415 million (2014) Total assets €30.97 billion (2014) Total equity €10.86 billion (2014) Number of employees 116,000 (2014) Slogan "Innovation & You" Website www.philips.com/global/ 8/29/2016 3
  4. 4. 8/29/2016 4
  5. 5. 5
  6. 6. 8/29/2016 6
  7. 7. (1910 to 1950s)  Philips Metal Filament Lamp Factory Ltd. was founded in Eindhoven in 1907.  That was followed in 1912 by the foundation of Philips Lightbulb Factories Ltd.  In 1920s,Philips started to diversify its product range.  In the 1920s, the company started to manufacture other products, such as vacuum tubes.  In 1939 they introduced their electric razor, the Philishave.  In 1949, the company began selling television sets. Vacuum Tubes. 8/29/2016 7
  8. 8. 1990 TO 2015  In may 1990 when company posted losses of $2.6 billion,top management launched a major initiative known as”Operation Centurion”.  In 1999,Philips embarked on a worldwide marketing campaign and changed their company’s image to a technology-oriented company rather than a market – oriented one.  In 2001,Philips launched a company wide restructuring program called “Towards One Philips’(TOP) under CEO Gerard Kleisterlee to foster greater co-operation.  The program helped not only in lowering costs but also promoted a spirit of collaboration.  In January 2011 Philips agreed to acquire the assets of Preethi, a leading India-based kitchen appliances company.  In March 2012 Philips announced its intention to sell, or demerge its television manufacturing operations to TPV Technology.  April 2013, Philips announced a collaboration with Paradox Engineering for the realization and implementation of a “pilot project” on network-connected street-lighting management solutions. This project was endorsed by the San Francisco Public Utilities Commission (SFPUC). 8/29/2016 8
  9. 9. TARGET APPLICATIONS IN THE PROFESSIONAL MARKET ARE DECORATIVE OUTDOOR AND SHOP LIGHTING… 9
  10. 10. ..creating new lighting possibilities 10
  11. 11. CASE STUDY 8/29/2016 11
  12. 12. REVENUE • Globally,Philips derives 34 percent of its revenues from lighting ,in India,the figure is 58 per cent. • In Health care,the global contribution is 40 per cent.In India it is 18 per cent • In Consumer lifestyle,the company gets 26 per cent of its overall revenues,in India,it is 24 per cent. • Totally the Indian unit closed the fiscal ended march 2012 with revenues of Rs 5,579 crore,growing at a clip of about 23 per cent per annum. 8/29/2016 12
  13. 13. PHILIPS GROWTH OVER THE YEARS 1891 1912 1920 1939 1949 1963 1982 2000 2011 2015 ACQUIRED THE ASSETS OF PREETHI.- INDIA BASED KITCHEN APPLIANCES COMPANY LAUNCHED COMPACT DISC. . INTRODUCED THEIR ELECTRIC LASER. STARTED MANUFACTURING VACCUUM TUBES. . . PHILIPS WAS FOUNDED. PHILIPS LIGHTBULB FACTORY COMES INTO EXISTANCE. PHILIPS BEGAN SELLING TELEVISION SETS. INTRODUCED THE COMPACT AUDIO CASSETTE TAPE FOLLOWED BY “RADIO RECORDER” FEW YEARS LATER. PHILIPS BOUGHT OPTIVA CORPORATION ACQUIRED VOLCANO CORPORATIO N 8/29/2016 13
  14. 14. Solutions  Philips embarked an improvement program called BEST (Business Excellent through Speed and Teamwork).  Have several tools and approaches as a part of BEST.  Some of them are: • Philips Business Excellence Model (PBE) • Process Survey Tools(PST) • Balanced Scorecard (BSC). Problem  Philips was successful since its inception, but its faced poor financial performance during the 1990s due to several reason: • Fall of market share. • High Manufacturing Costs. • Lack of competitive product price • Growing competition and Rapid changes in the external environment 8/29/2016 14
  15. 15. STRATEGY OF PHILIPS 8/29/2016 15
  16. 16. 8/29/2016 16
  17. 17. …cont’d RETAIL Emerging urbanization , population growth and new demand. AUTO Philips offers best- in-class lightning solutions in OEM & OES e.g. Hyundai INDUSTRY Requires better illumination for performance Reduces operating cost 8/29/2016 17
  18. 18. HEALTHCARE Supports hospitals and diagnostic centre medical equipments providers for experience of care Anesthesia Cardiology Critical care Home respiratory care Radiology PERSONAL CARE Market leader in male grooming equipments Personal care product is introduce in Tier 1 & Tier2 cities Trimmers Razors Wet & Dry electric shaver Steam Iron Hair dryer & straightner HEALTH CARE & PERSONAL CARE SOLUTIONS 8/29/2016 18
  19. 19. Questions raised at the end of mini case
  20. 20. Q.1 Evaluate Philips "sense and simplicity" strategy. What are the risks the company faces in using the tagline? Strategy – Philips sense and simplicity strategy was based around a marketing insight they obtained from a market research on their consumer segment. Philips wanted to make the technology hassle free and easy to access. Risks – 1) They would compromise on the advancement in technology in order to make things simpler. 2) They would give the impression of a less advanced electronics manufacturer, because of it's simple design and features. 8/29/2016 20
  21. 21. Q2. What strategies can Philips follow to ward off competition from Japanese manufactures of consumers electronics? The major advantage that Japanese manufacturers have over Philips is their ability to keep their prices lower. if Philips were to emphasize adherence to quality, simplicity of design, the multi-lingual instructional manuals, and the sense that their products provide more value for money, they would have an advantage. The ‘Sense and Simplicity’ campaign is all well and good, but Philips should take care to ensure that advertisements are designed in such a way as to ensure that customers understand the products in exactly what the company wants them to. 8/29/2016 21
  22. 22. Summary BMW’s Logo
  23. 23. Thank you 23
  24. 24. Created by Kouts Kumar, IET Lucknow, during a marketing internship under Prof. Sameer Mathur, IIM Lucknow. 24

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