17. Building the Leading Brand in Health and Well-BeingWe seek to improve the quality of people’s lives through focusing on theirhealth and well-being. Quite simply, we want to help people live a healthy,fulfilled life.By “health” we mean not only medical-related aspects of health, but alsokeeping fit, eating a healthy diet, and generally living a healthy lifestyle.By “well-being” we mean general sense of fulfilment, feeling good and at ease.“Well-being” also refers to a sense of comfort, safety and security people feelin their environment – at home, at work, when shopping or on the road.Our focus on Health and Well-being automatically implies that we contributeto building a sustainable society.Business Highlights in Q3As the global leader in patient monitoring, Philips introduced the benefits ofmobility to hospitals with the global launch of a compact, wearable patientmonitor, the IntelliVue MX40.The monitor enables remote mobile monitoring of patients in a supervisedrecovery environment, giving clinicians the freedom and flexibility to spendmore time with patients.
18. Philips introduced the Perfect Care, a revolutionary iron that uses a new steamtechnology, allowing the user to iron all of their clothes at one lowtemperature setting. Philips is the no. 1 brand in ironing worldwide.Combining its expertise in healthcare and lighting, Philips is developing ablanket that wraps babies in healing light, to make significant advances in thetreatment of bilirubinemia – or neonatal jaundice. Bilirubinemia affects 60% offull-term newborns and 90% of premature babies.The battle of perceptionPhilips has been a household name in India for 75 years, but consumersassociated the brand more with tube lights and transistors than cutting-edgetechnology.Thats ironic, considering the company has made its mark globally as atechnology leader -- it invented the cassette recorder, the compact disc andthe DVD; the last in association with Sony.But a survey by advertising agency JWT, which held the Philips account from2001 (it has recently moved to Madras), revealed that Philips technology wasseen as reliable but not state-of-the-art.Clearly, Philips needed an image makeover. It began by taking the technologyroute. Post-2001, advertising campaigns emphasised the companystechnologically-advanced features.Philips was the first audio company to launch an MP3 player (May 2002), and itmade sure its communication played that up: "Dont buy a system if it doesnthave an MP3 player." Then there was the October 2002 campaign, in which alittle boy uses the power of the music system to nudge the cookie jar off thetop-most kitchen shelf."We were constantly refining the image of the company in the minds of theconsumer, making it more modern," explains Tarun Rai, senior vice president,JWT.But that wasnt enough. Thats where in-store displays and promotions thatdemonstrated the abilities of Philips products came in. In October 2003, JWTbroke the "Ramu kaka" ad, where the manservant inadvertently inserts a rotiinto the DVD player.The tagline made the message clear: "The new Philips DVD player playsanything". The campaign proved immensely popular -- it was used in other
19. Asian countries as well -- and Philips wasnt slow in leveraging its appeal. Atlive demos, customers would be invited to slip rotis into the player, creating abuzz around the product and the brand.But that would probably appeal more to families and Philips needed to reachout to the youth, its target customer base. So it went to where the action was -- colleges and rock festivals.Philips set up stalls, complete with a professional DJ. Youngsters were invitedto man the console, while the DJ gave them tips on mixing and spinning. "Wehad huge walk-ins and could provide an involvement and experience with thebrand," says Shivkumar.Clinch the dealerPhilips has successfully played the price card, but not all price cuts have beendue to better or cheaper technology. In some segments like radios, it did awaywith trade discounts and passed on the savings to the customer.Two years ago, Philips radios sold at Rs 600 -- a huge premium compared tothe Rs 200 or so that other brands cost. In mid-2003, the company slashed theprice to Rs 400 and even introduced new models at the Rs 160 price point,especially targeting the non-urban youth segment.Not surprisingly, dealers were upset at their shrinking margins. Some startedstocking competing brands, only to return, claim company officials, when theyfound volumes were increasing exponentially."They soon realised it was more profitable to sell Philips radios because theturnover is much higher," points out Gunjan Srivastava, business head, audioconsumer electronics.Radio sales in themselves are not significant for Philips -- they account forabout 15 per cent of the audio business. But, as S Nagarajan, head sales andservice, explains, they help penetration and distribution of other products,such as DVDs, colour televisions and mini music systems.To ensure that happens, Philips changed its distribution strategy around twoyears ago. Distributors are now allocated smaller geographical territories sothey can concentrate on getting firmer footholds in their areas.
20. Distributor in upcountry markets, who were earlier, allotted five or six districtsare now given only two or three. And not all are given the entire productrange."We allocated only some products so that the focus is sharper" explainsNagarajan.Creating the value propositionPhilips realised early on that maintaining the price-quality equation is critical.Thats especially true of the minis (DVD and VCD hi-fi systems) segment, whichaccounts for a quarter of the audio market in value terms.Even as Philips constantly raised the technology bar (MP3 players, deeper bass,sleeker, more streamlined systems), its kept its prices competitive. Thecompany prices its minis at Rs 8,000-25,000, compared with the market rangeof Rs 7,500-30,000.Moreover, prices have been falling by 10 per cent on average every year. Ofcourse, thats true for other brands as well but, as Shivkumar points out,Philips "found the sweet spot at which youngsters could buy".How did it do that? By ensuring that it was neither perceived as a price warriorlike Aiwa or Sansui nor prohibitively expensive -- Sony products are on average10 per cent more expensive.Philips also brought in help from outside. In late 2002, it tied up withCountrywide and Citibank to provide accessible finance schemes for itsproducts.Compared to equal monthly instalments of about Rs 1,000 earlier, the newschemes let customers pick up state-of-the-art sound machines for as little asRs 333 a month - that too, without a down-payment.Has that helped? Consider: Philips entered the minis segment only in 2000, ayear behind Sony. But its now carved up the market with Sony, with 45 percent share each.The company also paid close attention to customer feedback. It has ramped upthe number of service centres across the country to 190, from 125 two years
21. ago. Today, over 900 technicians now attend to complaints, up from 600 in2002.The increased attention to the customer pays off in many ways. Realising thatmany customers were using the DVD player to play music discs, Philips decidedto offer two speakers with built-in amplifiers, along with the player.For just Rs 500 more, customers could get two benefits: enhance their musicplayback and, when used to play movie discs, get home theatre-quality sound.The response to the scheme has been encouraging, says Srivastava.He adds that the company is now considering building the amplifier into theplayer to further improve the sound.Product innovation has helped in rural markets, too. Based on customerresearch, in early 2003 Philips launched a radio with TV tuner -- this way,customers who didnt own a TV set could at least listen to televisionprogrammes.VISION 2010As part of Philips’s "Vision 2010" strategy, Philips Electronics India Limitedhad fuelled the companys growth plans in India with a marketing outlay ofRs 100 million for a series of five mega Philips Simplicity programs.These programs reflected the companys renewed focus on the consumerlifestyle, healthcare and lighting sectors.Philips announced its "Vision 2010" strategy to further position the companyas a market-driven, people-centric organization and a structure that fullyreflects the needs of its customer base, while also increasing shareholdervalue.Linking the strategy to India, Philips Electronics India Ltd. continued totransform, adapt and adapt to the changing needs of their consumers acrossHealthcare, Entertainment, Domestic Appliances and Lighting sectors.
17. สร้างแบรนด์ชั้นนำในสุขภาพและ BeingWe ดีพยายามปรับปรุงคุณภาพชีวิตของผู้คนผ่านเน้น theirhealth และสุขภาพ ค่อนข้างเพียง เราต้องการช่วยคนที่มีชีวิตสุขภาพ ดำเนิน โดย "สุขภาพ" เราหมายถึง ไม่เท่าแพทย์เกี่ยวข้องกับด้านสุขภาพ แต่ alsokeeping พอดี กินอาหารเพื่อสุขภาพ และสุขภาพที่อยู่อาศัยโดยทั่วไป โดย "ความเป็น" เราหมายถึง ความรู้สึกทั่วไป ของ สินค้า ความรู้สึกดี และอุ่นใจ" สุขภาพ"ยังหมายถึงความรู้สึกสบาย ความปลอดภัย และรักษาความปลอดภัยคน feelin ของสภาพแวดล้อมที่บ้าน ที่ทำงาน ช้อปปิ้ง หรือ บนถนน เราเน้นสุขภาพและสุขภาพโดยอัตโนมัติหมายถึงการที่เรา contributeto ที่สร้างสังคมอย่างยั่งยืน เน้นธุรกิจใน Q3As ผู้นำระดับโลกในการตรวจสอบผู้ป่วย ฟิลิปส์ ofmobility ประโยชน์แนะนำไปโรงพยาบาลด้วยการเปิดตัวทั่วโลกมีขนาดกะทัดรัด wearable patientmonitor, IntelliVue MX40 จอภาพให้ไกลมือถือตรวจสอบของผู้ป่วยใน supervisedrecovery ที่ให้ clinicians เป็นอิสระและความยืดหยุ่นเวลา spendmore กับผู้ป่วย18. ฟิลิปส์แนะนำเหมาะสมดูแล เหล็กปฏิวัติที่ใช้ steamtechnology ใหม่ อนุญาตให้ผู้ใช้เหล็กทั้งหมดของเสื้อผ้าของพวกเขาที่ตั้ง lowtemperature หนึ่ง ฟิลิปส์เป็นหมายเลข 1 แบรนด์ในการรีดผ้า worldwide.Combining ของความเชี่ยวชาญในการดูแลสุขภาพ และแสงสว่าง ฟิลิปส์ได้พัฒนา ablanket ที่ห่อทารกในการรักษาไฟ ต้องการความก้าวหน้าสำคัญใน thetreatment bilirubinemia – หรือ jaundice ทารกแรกเกิด Bilirubinemia มีผลต่อ newborns offull ระยะ 60% และ 90% ของเด็กก่อนวัยอันควร การต่อสู้ของ perceptionPhilips แล้วชื่อครัวเรือนในอินเดียปี 75 แต่ consumersassociated แบรนด์มากกว่าหลอดไฟและ transistors ตัด edgetechnology Thats เรื่อง พิจารณาบริษัทที่ทำเครื่องหมายเป็น atechnology ผู้นำทั่วโลก - คิดค้นเครื่องบันทึกเทป คอมแพคดิสก์ และดีวี ดี ล่าสุดกับ Sony.But การสำรวจ โดยหน่วยงานโฆษณา JWT ซึ่งจัดขึ้น from2001 บัญชีฟิลิปส์ (มันมีเพิ่งย้ายไปมาดราส), เปิดเผย wasseen เทคโนโลยีที่ฟิลิปส์เป็นน่าเชื่อถือ แต่ไม่รัฐ-of-the-art ชัดเจน ฟิลิปส์ต้องการรูปโฉม มันเริ่มด้วยการ technologyroute โพสต์-2001 โฆษณาส่งเสริมการขาย emphasised คุณลักษณะขั้นสูง companystechnologically ฟิลิปส์เป็นบริษัทแรกที่เพลงเปิดตัว MP3 player (2002 พฤษภาคม), และแน่ใจว่า การสื่อสารของเล่นที่ขึ้น itmade: "อย่าซื้อระบบถ้ามัน doesnthave MP3 เล่น" แล้ว มีแคมเปญ 2545 ตุลาคมในใต้บันไดที่เด็กใช้พลังงานของระบบเพลงดุนขนมบ่อย ๆ ปิดครัว thetop สุดชั้น" ตลอดเวลาเราได้ปรับรูปของบริษัทในความคิดของ theconsumer ทำให้ทันสมัยมากขึ้น อธิบายทารันไร่ รองประธานอาวุโส JWT แต่ที่ไม่เพียงพอ Thats ที่แสดงในร้านค้าและโปรโมชั่น thatdemonstrated ความสามารถของผลิตภัณฑ์ฟิลิปส์มา ในเดือน 2003 ตุลาคม JWTbroke โฆษณา "Ramu kaka" ที่ manservant ที่ตั้งใจแทรก rotiinto เครื่องเล่นดีวีดี สโลแกนที่ทำให้ข้อความชัดเจน: "ใหม่ดีวีดีฟิลิปส์เล่น playsanything" แคมเปญพิสูจน์อย่างกว้างขวางนิยม - ถูกใช้ในที่อื่น ๆ19. Asian countries as well -- and Philips wasnt slow in leveraging its appeal. Atlive demos, customers would be invited to slip rotis into the player, creating abuzz around the product and the brand.But that would probably appeal more to families and Philips needed to reachout to the youth, its target customer base. So it went to where the action was -- colleges and rock festivals.Philips set up stalls, complete with a professional DJ. Youngsters were invitedto man the console, while the DJ gave them tips on mixing and spinning. "Wehad huge walk-ins and could provide an involvement and experience with thebrand," says Shivkumar.Clinch the dealerPhilips has successfully played the price card, but not all price cuts have beendue to better or cheaper technology. In some segments like radios, it did awaywith trade discounts and passed on the savings to the customer.Two years ago, Philips radios sold at Rs 600 -- a huge premium compared tothe Rs 200 or so that other brands cost. In mid-2003, the company slashed theprice to Rs 400 and even introduced new models at the Rs 160 price point,especially targeting the non-urban youth segment.Not surprisingly, dealers were upset at their shrinking margins. Some startedstocking competing brands, only to return, claim company officials, when theyfound volumes were increasing exponentially."They soon realised it was more profitable to sell Philips radios because theturnover is much higher," points out Gunjan Srivastava, business head, audioconsumer electronics.Radio sales in themselves are not significant for Philips -- they account forabout 15 per cent of the audio business. But, as S Nagarajan, head sales andservice, explains, they help penetration and distribution of other products,such as DVDs, colour televisions and mini music systems.To ensure that happens, Philips changed its distribution strategy around twoyears ago. Distributors are now allocated smaller geographical territories sothey can concentrate on getting firmer footholds in their areas.20. Distributor in upcountry markets, who were earlier, allotted five or six districtsare now given only two or three. And not all are given the entire productrange."We allocated only some products so that the focus is sharper" explainsNagarajan.Creating the value propositionPhilips realised early on that maintaining the price-quality equation is critical.Thats especially true of the minis (DVD and VCD hi-fi systems) segment, whichaccounts for a quarter of the audio market in value terms.Even as Philips constantly raised the technology bar (MP3 players, deeper bass,sleeker, more streamlined systems), its kept its prices competitive. Thecompany prices its minis at Rs 8,000-25,000, compared with the market rangeof Rs 7,500-30,000.Moreover, prices have been falling by 10 per cent on average every year. Ofcourse, thats true for other brands as well but, as Shivkumar points out,Philips "found the sweet spot at which youngsters could buy".How did it do that? By ensuring that it was neither perceived as a price warriorlike Aiwa or Sansui nor prohibitively expensive -- Sony products are on average10 per cent more expensive.Philips also brought in help from outside. In late 2002, it tied up withCountrywide and Citibank to provide accessible finance schemes for itsproducts.Compared to equal monthly instalments of about Rs 1,000 earlier, the newschemes let customers pick up state-of-the-art sound machines for as little asRs 333 a month - that too, without a down-payment.Has that helped? Consider: Philips entered the minis segment only in 2000, ayear behind Sony. But its now carved up the market with Sony, with 45 percent share each.The company also paid close attention to customer feedback. It has ramped upthe number of service centres across the country to 190, from 125 two years21. ago. Today, over 900 technicians now attend to complaints, up from 600 in2002.The increased attention to the customer pays off in many ways. Realising thatmany customers were using the DVD player to play music discs, Philips decidedto offer two speakers with built-in amplifiers, along with the player.For just Rs 500 more, customers could get two benefits: enhance their musicplayback and, when used to play movie discs, get home theatre-quality sound.The response to the scheme has been encouraging, says Srivastava.He adds that the company is now considering building the amplifier into theplayer to further improve the sound.Product innovation has helped in rural markets, too. Based on customerresearch, in early 2003 Philips launched a radio with TV tuner -- this way,customers who didnt own a TV set could at least listen to televisionprogrammes.VISION 2010As part of Philips’s "Vision 2010" strategy, Philips Electronics India Limitedhad fuelled the companys growth plans in India with a marketing outlay ofRs 100 million for a series of five mega Philips Simplicity programs.These programs reflected the companys renewed focus on the consumerlifestyle, healthcare and lighting sectors.Philips announced its "Vision 2010" strategy to further position the companyas a market-driven, people-centric organization and a structure that fullyreflects the needs of its customer base, while also increasing shareholdervalue.Linking the strategy to India, Philips Electronics India Ltd. continued totransform, adapt and adapt to the changing needs of their consumers acrossHealthcare, Entertainment, Domestic Appliances and Lighting sectors.
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