October 6th, 2009
In mid September Philips issued a press release, announcing that the total estimated value of the Philips brand in 2009 was USD 8.1bn. This represents a dramatic climb since Philips launched its “sense and simplicity” brand promise in 2004, when its brand was valued USD 4.4 billion. In 2008, Philips’ brand value value grew more than twice as fast as that of its closest competitors.
Is it just juggling with numbers, or is Philips able to translate “sense and simplicity” into a positive customer experience designed around their needs? According to a Philips investor relations presentation, a significant amount of sales is attributable to the brand alone:
- Healthcare 29%
- Consumer Lifestyle 24%
- Lighting 21%
“Sense and simplicity” has become the driver of a strong internal brand, with 83% of employees now mentioning that they are “proud to work for Philips”.
Clearly, the repositioning has enabled Philips to become true, relevant and of high value to everyone across the value chain.
Written by Pim Schuitemaker, October 6th, 2009 in category Operations, Philips |
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September 3rd, 2009
In the global paper industry, companies fight to lift their products above the “commodity” label. Now, Philips Design has been hired to strengthen the differentiation of Stora Enso. Competitors beware.
It’s hard to argue with the power of Philips’ differentiation in a field of similar competitors. As mentioned in a previous post, the involvement of people in the process made the difference. Now, Philips Design is helping Stora Enso through a brand-driven transformation and it sounds like they are using the same thoughtful and engaging approach.
Jouko Karvinen, CEO of Stora Enso, was head of American Philips Medical Systems during 2002-2006, the years in which Philips developed and implemented their positioning strategy. He is already defining Stora Enso’s business more broadly than most, viewing materials like plastic and metal as the real competitive landscape. The collaboration with Philips Design, and the investments that follow, have the potential to change the game in the forest products industry.
Read the announcement by Philips Design
Written by Michael Sherain, September 3rd, 2009 in category Brands, Philips, Positioning Strategy, Uncategorized |
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June 22nd, 2009
People often ask us how generic ideas like performance, reliability or problem solving can be the basis for strategic differentiation. One part of the answer is that the idea you choose needs to be true, relevant and high value across your value chain. However, differentiation depends on how thoroughly and uniquely you execute on the idea. In fact, the simpler the idea is the better, and nothing illustrates the power of simplicity better than Philips.
Josephine Green, one of the primary drivers behind Philips’ repositioning, once told Mark and me how it came about. She described the research, the insights and the link to the business strategy. But the most important thing she said was that the focus on simplicity felt right to everyone involved in the process. They where putting people in the center and taking a very human view of the future.
That leads to the other part of the answer. Positioning strategy isn’t science. For most companies, there is more than one right direction. The important thing is that people believe in the direction you choose.
This video describes the sense in Philips’ simplicity:
Written by Michael Sherain, June 22nd, 2009 in category Philips, Positioning Strategy |
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