Philips - Realizing the value of sense and simplicity

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