philips branding case study

Philips Marketing Strategy: Driving Sustainability and Sales

Archana Karthikeyan

In today’s world, businesses are constantly looking for new ways to reach their target audiences and stand out in the market. Philips, one of the world’s leading companies in consumer electronics, has been at the forefront of marketing success for many years. In this blog post, we’ll take a look at the company’s effective marketing strategies.

Founded in 1891, Philips has grown to become one of the largest and most successful companies in the world. The Dutch multinational conglomerate corporation is best known for its consumer electronics and health and wellness products. It has also expanded into other areas such as lighting, appliances, and home care products. In this blog post, we’ll take a look at the company’s effective marketing strategies.

Philips - Innovation and Marketing Success Philips Target Audience Philips Marketing Mix Philips Marketing Strategies Philips Marketing Campaigns

Philips - Innovation and Marketing Success

Philips started out as a small family business in the Netherlands. The company was initially focused on selling light bulbs, but over the years, Philips has diversified its business and now offers a wide range of products and services. Today, Philips is a global brand with a presence in more than 100 countries. Philips’ success can be attributed to the company’s focus on innovation and its ability to stay ahead of the competition. The company has a long history of introducing new products, such as the world’s first electric shaver and the first portable CD player. Philips also pioneered the use of digital technology, launching the world’s first digital audio tape recorder in 1979.

In addition to its focus on innovation, Philips has also invested heavily in marketing and advertising. Over the years, the company has launched several successful marketing campaigns that have helped to increase brand awareness and solidify its position as a leading player in the consumer electronics industry.

With a long and rich history, Philips has been able to adapt its marketing strategies over the years to stay relevant and top-of-mind for consumers. It all started in 1891 when Gerard Philips and his father, Frederik Philips, started the company in Eindhoven, Netherlands. The company originally produced carbon-filament lamps and other electrical goods. In 1895, the company produced its first incandescent light bulb and began to expand its product line to include other electrical appliances.

In recent years, Philips has made a shift in its marketing strategy, focusing more on digital and social media marketing. This has helped the company reach a wider audience and connect with consumers on a more personal level. In addition to its digital marketing efforts, Philips has also increased its focus on sustainability, which is a key concern for many consumers today.

By keeping up with the latest trends and investing in innovative marketing strategies, Philips has been able to stay ahead of the curve and remain a leading player in the consumer electronics industry.

Philips Target Audience

Philips’ target audience is broad and diverse. The company’s products are designed to appeal to a range of consumers, from tech-savvy millennials to baby boomers. Philips also appeals to a wide range of price points, making their products accessible to a variety of budgets.

Philips’ target audience is also changing over time. As the company has introduced new products and services, its target audience has shifted to meet the needs of the changing market. For example, Philips has recently been focused on providing health and well-being solutions to an aging population, as well as products that are designed to meet the needs of the tech-savvy millennial.

Philips Marketing Mix

Philips dominates the market in the majority of its product categories. It has around 45.8% share of revenue in the audio market. It also has a significant market share for lighting systems. In India, the original Philips chips are used in 3 out of 5 televisions.

It has been the industry leader for many years because of its amazing marketing strategy.

This gets us curious about Philips' marketing approach. In this blog, the four marketing Ps—Product, Place, Price, and Promotion—will be discussed.

Product Strategy

The product strategy is the initial phase of Philips' branding strategy . It is among the largest businesses in the electronics sector. It has utilized cutting-edge engineers and advanced technology to design and manufacture new and better goods in order to innovate its products in the finest possible way. It strives to greatly simplify the lives of its users and has the following objectives: “Innovation and you”.

The product line of Philips has three broad categories - Consumer lifestyle, lighting, and healthcare. Each category has various innovative products to meet the needs of every target audience.

In order to create fresh and cutting-edge solutions, Philips has also collaborated with a number of different businesses. At the moment, 20 other firms are collaborating with it. In addition to 33,000 trademarks and 114,000 design rights, the brand has 56,000 patent rights.

Place Strategy

The place strategy of Philips is the subsequent phase in the company's marketing strategy. Around 1,20,000 individuals work for it in the service and sales division. Philips has used regional distributors and sales divisions for the promotion of its goods.

Philips primarily uses two marketing channels to advertise their products:

• Directly to consumers through its online website
• Through wholesalers and retailers

Its distribution approach may be attributed as the cause of the business's success. In order to make sure that its products are easily accessible to all customers, it employs an aggressive marketing approach in which it seeks to put its products in as many outlets as possible.

Philips' website receives a substantial quantity of traffic in addition to having a sizable amount of online purchases. It has teamed up with a number of delivery service providers to manage its online operations smoothly and effectively in order to offer timely delivery services.

Price Strategy

Philips maintains a straightforward price strategy in order to survive the fierce competition. Even though the products must be priced higher than those of the rivals, the corporation has made the decision to not compromise on their quality.

Philips adopts a competitive pricing approach, nevertheless, and charges prices for its products that are comparable to those of its rivals. Customers consider and have the option to choose higher quality items because the prices are almost the same.

Philips has therefore been able to produce a large volume of income and sales while maintaining a sizable market share.

Promotion Strategy

To advertise its name and goods, Philips employs a multichannel strategy . As a part of the promotional mix, the firm engages in promotional efforts on Social Media, TV, Print, Radio, Events, and Sponsorships.

As part of its advertising, it has also employed several famous celebrities. The advertisements it has produced are also quite creative.

As part of its marketing strategy, Philips also provides a variety of discount cards and coupons. In addition, it sponsors several sporting teams and events, including Australian Rugby, the Commonwealth Games in India, and the F1 race. Additionally, it supports the "Monster of Rock Festival."

In order to better engage with consumers and raise brand recognition, Philips is likewise active on social media sites like Twitter and Facebook.

Additionally, it has started an integrated marketing effort that has been warmly accepted by the public to promote its brand promise of "Innovation and You" as well as the idea of using green energy to improve people's lives.

These are the 4Ps of the marketing mix that Philips employs to be the market leader.

Philips Marketing Strategies

Philips has been a leader in the marketing world for many years. The company has a long history of successful campaigns and strategies and has been able to stay ahead of the competition by continuously introducing new products and marketing campaigns. Here are some of the most effective marketing strategies used by Philips:

Brand Loyalty

Philips has been able to build strong brand loyalty among its customers . The company has invested in research to understand the needs and desires of its customer base and has crafted products and campaigns to meet those needs.

Content Marketing

Philips has been successful at leveraging content marketing to reach its target audience. The company produces content that is both informative and entertaining and uses it to engage with its customers and build relationships.

Social Media

Philips has leveraged social media to reach a broader audience and engage with its customers. The company has a strong presence on platforms such as Facebook , Twitter , and Instagram , and uses these platforms to create conversations and promote its products.

Celebrity Endorsement

Philips has been successful at leveraging celebrity endorsement to reach its target audience. The company works with celebrities to create content that aligns with its brand and resonates with its target audience.

Experiential Marketing

Philips has been successful at creating unique and memorable experiences for its customers. The company has created events and experiences that let customers get up close and personal with its products.

Online Advertising

Philips has leveraged online advertising to reach a wider audience and create more awareness for its products. The company has used a variety of methods, such as search engine marketing, display ads, and social media ads , to reach its target audience.

Mobile Marketing

Philips has been successful at leveraging mobile marketing to reach its target audience. The company has created mobile campaigns that are tailored to the needs of its customers and are optimized for mobile devices.

Product Placement

Philips has leveraged product placement to create more awareness for its products. The company has placed its products in movies, television shows, and other media in order to create a more positive association with its brand.

PR and Media Relations

Philips uses PR and media relations to build relationships with the media and create positive publicity for the company. The company also uses PR to build relationships with influencers.

Event Marketing

Philips participates in various events to promote its products and services. The company also sponsors events to create brand awareness.

Search Engine Optimization

Philips uses SEO techniques to optimize its website and content for search engines. This helps the company to reach its target audience more easily.

Philips Marketing Campaigns

Philips has launched a variety of marketing campaigns over the years. One of the company’s most successful campaigns was the “Light is Life” campaign, which was launched in 2014. The campaign featured a series of television commercials that highlighted the importance of light in our lives. The campaign is still remembered by many today.

In 2016, Philips launched the “Live Well” campaign, which focused on the importance of health and well-being. The campaign featured a series of television commercials that highlighted the importance of taking care of ourselves and our loved ones. The campaign was a huge success and raised awareness about the importance of leading a healthy lifestyle.

Philips has also launched several digital campaigns over the years. In 2017, Philips launched the “Connected Home” campaign, which highlighted the brand’s smart home solutions. The campaign featured a series of videos that showcased how Philips’ products can make our lives easier and more efficient. The campaign successfully raised awareness about the brand’s smart home solutions.

Philips launched a popular digital campaign in 2020 called #StyleThatSpeaksforYou . The campaign focuses on the importance of good hair in one's life and how it is an important tool to express oneself. Therefore, it's essential that hair is properly taken care of and styled well.

Philips’ marketing strategies have helped the company become a global leader in the fields of innovation and technology, and there are many tips to learn from Philips. By understanding the target audience and implementing a wide range of marketing strategies, companies can also achieve success like Philips.

What are the marketing strategies of Philips?

Some of the most effective marketing strategies used by Philips are brand loyalty, content marketing, social media marketing, experiential marketing, online advertising, event marketing, and more.

When was Philips founded?

Philips was founded in 1891 in Eindhoven, Netherlands, by Gerard Philips and his father, Frederik Philips.

What is the target audience of Philips?

Philips’ target audience is broad and diverse. Its products are designed to appeal to a range of consumers, from tech-savvy millennials to baby boomers. It also appeals to a wide range of price points, making its products accessible to a variety of budgets.

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Marketing Strategies and Marketing Mix of Philips

Marketing Strategies and Marketing Mix of Philips 13 min read

Koninklijke Philips N.V., commonly known as Philips, is a Dutch multinational conglomerate corporation established in Eindhoven back in 1891. Although its headquarters shifted to Amsterdam in 1997, the Benelux headquarters still remains in Eindhoven. Once a major player in the electronics industry, Philips has now redirected its focus towards health technology , divesting from its other business sectors.

Founded by Gerard Philips and his father Frederik in 1891, Philips initially specialized in manufacturing light bulbs. The company has a global presence, with approximately 80,000 employees spread across 100 countries. In 1998, it received a royal honorary title, hence the name “Koninklijke,” and in 2013, it dropped the “Electronics” from its name to reflect its shift from consumer electronics to healthcare technology.

Philips operates through three main divisions : Personal Health (formerly known as Philips Consumer Electronics and Philips Domestic Appliances and Personal Care), Connected Care, and Diagnosis & Treatment (formerly Philips Medical Systems). The lighting division became a separate company, Signify N.V.

Over the years, Philips has made notable contributions to various industries . In 1939, they introduced electric shavers under the brands Philishave and Norelco. Post-World War II, Philips played a pivotal role in developing the Compact Cassette and co-developed the compact disc format in collaboration with Sony.

Philips is publicly traded with a primary listing on the Euronext Amsterdam stock exchange and is part of the Euro Stoxx 50 stock market index . Additionally, it maintains a secondary listing on the New York Stock Exchange. Philips has also expanded through acquisitions, including Signetics and Magnavox. Furthermore, the company has a historical connection to sports, having founded the multidisciplinary sports club PSV Eindhoven in 1913.

Table of Contents

Marketing Strategies of Philips

Marketing strategies employed by Philips Electronics have evolved over the years to align with changing consumer demands and market dynamics. Below, I’ll provide a detailed explanation of some key marketing strategies Philips has used:

1. Product Innovation

Philips specializes in healthcare, lighting, and consumer lifestyle products. One of their key strategies for growth and differentiation in the marketplace is through product innovation. They invest heavily in research and development to create new and improved products that meet the changing needs of consumers.

For example, in the area of healthcare, P hilips has developed advanced medical equipment such as MRI machines and CT scanners that provide more accurate diagnoses and improve patient outcomes. These innovations have helped them establish themselves as a leader in the healthcare industry and attract customers who value cutting-edge technology.

In the field of lighting, Philips has introduced energy-efficient LED bulbs and smart home lighting systems that can be controlled remotely using mobile devices. This has allowed them to tap into the growing demand for sustainability and convenience among consumers.

Overall, product innovation allows Philips to differentiate itself from competitors and offer unique solutions to customer problems. By continuously developing new and better products, they are able to maintain a strong brand image and build loyalty among their customers.

2. Digital Marketing

As a global technology company, Philips has embraced digital marketing as a core part of its overall marketing strategy.

One of the ways that Philips uses digital marketing is through content marketing . They produce high-quality blog posts, videos, infographics, and other types of content that showcase their expertise and thought leadership in areas like healthcare, lighting, and consumer electronics. This content is shared across social media platforms and their website, and helps to drive traffic and generate leads.

Additionally, Philips leverages paid advertising on search engines and social media platforms to target specific audiences based on demographic and behavioral data. For instance, they might run ads promoting their latest healthcare device to individuals who have shown interest in related topics or have searched for similar products.

Finally, Philips uses email marketing to nurture relationships with existing customers and prospects. They send regular newsletters and personalized emails that provide valuable information and updates about their products and services.

Overall, digital marketing provides Philips with a powerful set of tools to connect with customers, build brand awareness, and drive sales. By combining creative content, SEO, paid advertising, and email marketing, they are able to reach and engage with their audience in meaningful ways.

3. Branding Identity

At the core of Philips’ brand identity lies its USP – “innovations that matter to you.” This statement emphasizes the company’s commitment to delivering meaningful innovations that positively impact people’s lives. It sets Philips apart from competitors who may prioritize novelty over practicality or functionality.

Positioning: Philips positions itself as a premium brand that delivers exceptional quality, cutting-edge features, and reliable performance. Its tagline, “Innovation and You.” further underscores this focus on improving people’s well-being through advanced technology.

Visual Identity: Philips employs a consistent visual identity across all communication channels, featuring the iconic Sonicare logo in blue and white colors. The logo represents precision, simplicity, and modernity while also evoking feelings of trust and expertise.

Consistency: Philips maintains consistency throughout its brand messaging, advertising campaigns, product designs, and retail environments. This cohesiveness helps establish a recognizable brand persona and builds consumer confidence in the company’s offerings.

4. Healthcare Partnerships

Philips has pursued several strategic partnerships as part of its marketing efforts in order to expand its presence in the healthcare industry and enhance its product offering.

One example of a successful partnership for Philips was its collaboration with the Radboud University Medical Center in the Netherlands . Together, they created the first fully digital hospital room, which integrated all aspects of patient care including monitoring, communication, entertainment, and comfort. This project not only demonstrated Philips’ commitment to innovation but also provided a real-world testing ground for new technologies and workflows.

Another notable partnership for Philips was its joint venture with US-based medical device manufacturer Medtronic . Through this alliance, the two companies combined their respective strengths in imaging and therapy to develop novel solutions for cardiovascular disease management. This collaboration enabled both firms to leverage each other’s resources and expertise while creating new opportunities for growth.

Moreover, Philips has formed numerous partnerships with hospitals, clinics, and healthcare providers around the world. These agreements typically involve the deployment of Philips’ medical equipment and software solutions, along with training and support services. By working closely with end users, Philips gains valuable insights into their needs and preferences, allowing it to refine its products and tailor its marketing messages accordingly.

Overall, healthcare partnerships play a crucial role in Philips’ marketing strategy by enabling the firm to access new markets, accelerate innovation, and build trust with stakeholders. By forming mutually beneficial alliances with leading institutions and practitioners, Philips demonstrates its commitment to improving healthcare outcomes and advancing the state.

5. Customer Relationship Management (CRM)

At Philips, CRM plays a critical role in building long-term relationships with clients and ensuring customer satisfaction.

Philips utilizes various CRM techniques such as data analysis, segmentation, and personalization to understand and meet the needs of individual customers. The company collects data from multiple sources, including point-of-sale transactions, customer service interactions, and online activity, to create detailed profiles of its customers.

By analyzing this data, Philips can identify patterns and trends that help inform its marketing decisions. For example, if the company sees that a particular group of customers frequently purchases certain products together, it may bundle those items in a special promotion or create custom bundles based on individual preferences.

Segmentation is another key component of Philips’ CRM approach . The company divides its customer base into distinct groups based on factors such as age, location, purchase history, and interests. By understanding these differences, Philips can tailor its messaging and offers to resonate more effectively with different segments of its audience.

Personalization is yet another essential element of Philips’ CRM strategy . The company uses automated processes and artificial intelligence algorithms to deliver highly targeted communications and recommendations to individual customers. For instance, if someone visits the Philips website and browses a particular category of products, the site may display personalized suggestions or promotions when they return later.

To ensure seamless integration of CRM across departments and touchpoints, Philips employs a centralized platform called Salesforce. This system enables teams to share data, track customer interactions, and coordinate campaigns in real time. It also facilitates cross-functional and efficient execution of marketing initiatives.

In summary, Customer Relationship Management (CRM) is a vital aspect of Philips’ marketing strategy. By leveraging data analytics, segmentation, personalization, and technology platforms like Salesforce, the company creates meaningful connections with its customers and fosters loyalty through relevant and timely communications.

6. Global Expansion and Localization

As a multinational corporation operating in over 100 countries, Philips has embraced global expansion as a core marketing strategy.

The company recognizes that every country has unique cultural norms, consumer behavior, and regulatory environments. To adapt to these variations, Philips adopts a localization approach whereby it tailors its offerings, branding, and marketing activities to suit specific regional contexts.

For instance, in China, Philips partnered with local e-commerce giant Alibaba to sell its products directly to consumers via the popular Taobao shopping platform. In India, Philips developed low-cost, high-quality medical devices designed specifically for rural areas where access to quality healthcare is limited.

Similarly, in Africa, Philips launched “ Mobile Diagnostic Services ,” a portable ultrasound solution that brings prenatal care to remote communities without easy access to medical facilities. Such locally adapted solutions demonstrate Philips’ commitment to addressing diverse customer needs globally.

Beyond product development, Philips also emphasizes local language content creation and translation to cater to linguistic diversity in its target regions. Its websites, social media accounts, advertisements, and packaging often feature multiple languages to accommodate varying levels of literacy and comprehension among potential buyers.

Furthermore, Philips engages in cross-cultural research to better understand consumer behaviors and values across different geographies. This helps the company avoid missteps due to cultural insensitivity or ignorance, thereby minimizing reputational risks associated with global expansion.

7. Partnerships and Alliances

Partnerships and alliances play a significant role in Philips’ marketing strategy. Here are some details about how the company leverages partnerships and collaborations to enhance its market presence and competitive advantage:

Collaborating with Complementary Businesses:

One of the most common types of partnerships pursued by Philips is collaboration with complementary businesses that offer products or services that align well with its own. These strategic alliances enable both parties to expand their respective customer bases while sharing resources and expertise.

For example, Philips teamed up with American telemedicine provider Teladoc to develop virtual consultation tools for patients seeking medical advice remotely. Similarly, Philips joined forces with Amazon to integrate Alexa voice control capabilities into select home appliance products, enabling users to manage their smart homes hands-free.

Joint Ventures and Acquisitions:

Another form of partnership adopted by Philips is joint ventures and acquisitions . Through mergers and acquisitions, the company gains access to new technologies, talent, and distribution channels that would have taken longer to develop organically. Joint ventures allow Philips to combine resources with other companies to explore emerging markets or innovative product categories.

A notable example of a successful acquisition was Philips’ takeover of Volcano Corporation , which specialized in intravascular imaging systems for cardiovascular disease diagnosis. This move strengthened Philips’ position in the growing field of image-guided therapy and expanded its offering of interventional equipment for hospitals worldwide.

Strategic Licensing Agreements:

Licensing agreements represent another type of partnership pursued by Philips. Under these arrangements, the company grants permission to third-party organizations to use its intellectual property rights, patents, trademarks, or copyrights in exchange for royalties or fees.

For instance, Philips entered into a licensing agreement with GoPro to incorporate its digital imaging technology into action cameras and video editing software. This collaboration allowed both firms to leverage each other’s strengths and create more compelling user experiences for outdoor enthusiasts and content creators.

Healthcare Ecosystem Development:

Philips actively participates in building broader industry networks and coalitions to drive innovation and improve patient outcomes. The company works closely with healthcare providers, payers, policymakers, and other stakeholders to design integrated solutions that streamline workflows, reduce costs, and enhance the overall quality of care.

By cultivating strong relationships within the healthcare community, Philips positions itself as a trusted advisor and thought leader, helping shape the future direction of healthcare delivery . For instance, Philips co-founded the HealthSuite Digital Platform with leading IT firm Accenture , aiming to connect various healthcare applications and devices on a secure, cloud-based infrastructure.

Partnerships and alliances are crucial elements of Philips’ marketing strategy, allowing the company to extend its reach, tap into new growth opportunities, share knowledge and resources, and build credibility within key industries. By selecting the right partners and structuring mutually beneficial arrangements, Philips continues to reinforce its reputation as an innovator and problem solver, meeting evolving customer needs around the globe.

In conclusion, Philips  employs a comprehensive marketing strategy that combines innovation, digital marketing, customer-centricity, and sustainability to maintain its position as a leading global brand in healthcare technology and consumer electronics. They continuously adapt their strategies to meet the evolving needs of consumers and the changing dynamics of the market.

Marketing Mix of Philips

Philips, like many successful companies, employs the marketing mix, often referred to as the 4Ps: Product, Price, Place, and Promotion. Here’s a detailed explanation of how Philips utilizes each element of the marketing mix:

• Product Innovation: Philips is renowned for its product innovation, spanning healthcare technology, consumer electronics, and lighting solutions. They invest heavily in research and development to introduce cutting-edge products that address evolving customer needs.
• Diverse Product Range: Philips offers a diverse range of products, including medical devices (e.g., MRI machines, patient monitors), personal health products (e.g., electric toothbrushes, shavers), consumer electronics (e.g., televisions, audio equipment), and lighting solutions (e.g., LED bulbs, smart lighting systems).
• Quality and Durability: The company is committed to producing high-quality and durable products, which contributes to a positive brand reputation. Philips emphasizes product safety and reliability.
• Pricing Strategies: Philips employs various pricing strategies depending on the product category and market segment. For premium, innovative healthcare devices, they often use a value-based pricing approach, while for consumer electronics, they may use competitive pricing to target broader markets.
• Value Perception: Philips aims to create a perception of value for money by highlighting the quality, features, and benefits of their products. They often justify premium prices with superior performance and durability.
• Promotions and Discounts: Periodically, Philips offers promotions, discounts, and bundles to incentivize purchases, especially during seasonal or promotional events.

Place (Distribution)

• Global Presence: Philips has a global distribution network, making its products accessible in many countries. They have partnerships with retailers, both online and offline, as well as direct sales channels.
• E-commerce: With the growth of online shopping, Philips has a significant presence on e-commerce platforms, allowing customers to conveniently purchase products online. Their official website also serves as a direct sales channel.
• Healthcare Channel: In the healthcare sector, Philips collaborates directly with hospitals, clinics, and healthcare providers to distribute medical equipment and solutions.
• Advertising: Philips invests in advertising campaigns to create brand awareness and promote specific products. They use various media channels, including television, radio, print, and digital advertising.
• Content Marketing: Philips uses content marketing to educate consumers about their products and industry trends. They create informative blogs, videos, and whitepapers.
• Social Media: Philips has a strong presence on social media platforms to engage with customers, share product updates, and provide customer support.
• Sponsorships and Partnerships: They engage in sponsorships and partnerships to enhance brand visibility. For instance, sponsoring sports events or collaborating with healthcare institutions to showcase their medical equipment.

Overall, Philips’ marketing mix is comprehensive and tailored to the specific characteristics of each product category they offer. It balances innovation, quality, pricing strategies, distribution channels, and promotional efforts to meet customer needs and maintain a competitive edge in their diverse markets.

Also Read: Philips – The Global Consumer Electronics Brand With Innovation At Heart

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Philips: Sense and Simplicity

By: John Zerio

The case describes the challenge faced by the CEO and newly hired Chief Marketing Officer to reposition the Philips brand and drive the organizational changes to support the new vision. Central to…

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• Publication Date: Dec 21, 2007
• Discipline: Marketing
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The case describes the challenge faced by the CEO and newly hired Chief Marketing Officer to reposition the Philips brand and drive the organizational changes to support the new vision. Central to the version was the Sense and Simplicity marketing campaign, which came to embody a whole new way of doing business at Philips. The primary target of the Sense and Simplicity campaign was customers aged 35-55. Philips was not thought of as a cool and attractive brand by Generation Y consumers. Philips must rewire the Sense and Simplicity campaign for the Generation Y market.

Learning Objectives

This is an experimental case analysis in which students are expected to study the recent evolution of the Sense and Simplicity campaign through the ads and Philips' annual shows available online. The case is designed to place the students in the role of an advertising agency's creative director, as they are expected to produce an advertisement in a storyboard form. Further, the case will help students to understand the dimensions of the repositioning process, and explore the intricate relationship between product design and brand image.

Dec 21, 2007

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Thunderbird School of Global Management

TB0083-PDF-ENG

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Innovating in the face of a pandemic and developing employee stories content virtually: the Philips case study from Stories Incorporated.

Philips is a global leader in health technology. 130-years ago, the company’s first products were light bulbs, then expanded to consumer technologies. Today, Philips focuses on healthcare innovations and medical technologies that make people’s lives better all over the world. A team of 80,000 employees in over 100 countries make up the Philips workforce. 

The Philips employer brand team wanted to create visually compelling and substantive employee story videos to support their Employer Value Proposition (EVP). They also wanted to create content that would target talent in several critical hiring areas: engineers, sales, precision diagnostics and marketing transformation. They partnered with Stories Inc. to create an employee story series. In early 2020, the teams planned visits to several of Philips’ U.S. offices to uncover and capture those stories. 

Then, the pandemic hit. 

Travel and onsite production were impossible. 

The teams needed a virtual employee storytelling solution that wouldn’t sacrifice production value, while still giving candidates valuable insight into Philips’ culture. 

Adjusting the Plan

Staying true to their deep history of innovation and creativity, Philips was up for trying something new. They were the first company Stories Inc. worked with to develop a solution for uncovering stories virtually to reflect our disrupted world of work. 

The team quickly adjusted their story gathering methods to a virtual process that still honored the employee storyteller experience. The Stories Inc. team facilitated interviews that uncovered engaging, real stories and preserved the employee storyteller experience. But rather than face to face, the interviews happened screen to screen.

Instead of filming in the Philips office, the employees were interviewed from the safety of their own home offices. The Stories Inc. team adapted their most important in person production processes to accommodate employees working from home, while still maintaining high visual and audio quality. It was also important to create visual and audio consistency among every employee storyteller. 

And, with change and innovation, opportunity arrived. A virtual storytelling experience removed geographic barriers, so Philips quickly expanded their storyteller participation to include team members from outside the US, too. A total of 12 team members from four countries—Brazil, Mexico, Panama, and the United States—shared stories of their Philips employee experiences and roles. Not only did this result in additional perspectives, the video series could now be used in more ways that could target talent outside the US as well. 

Honoring Employee Stories

Storyteller comfort is essential to uncovering powerful stories. 

It was important to bring as much of the in person interview experience to the virtual process. Each storyteller was shipped a custom video kit with HD video and audio equipment, lighting, a green screen and a detailed set up guide. Ahead of the interview, Stories Inc. walked each storyteller through the tech setup and spent time preparing them for the conversation. 

On the day of their interview, Stories Inc. spent time with each Philips employee storyteller testing the audio and video so that the storytellers felt confident that they looked and sounded great. 

As a result, the team found that the employee storytellers were extremely natural, relaxed and engaged during filming. The facilitated interviews themselves ran longer than planned—not due to technical difficulties, but because storytellers had so much to share! For the Spanish- and Portuguese-language interviews, professional translators joined the interview so storytellers could share their experiences in their native languages (although many storytellers were multilingual). 

Interested in capturing stories from your team members?

Post-production creativity .

After the stories were uncovered and captured, the Philips and Stories Inc. teams were able to follow the professional post-production process they had planned pre-COVID. Graphics, b-roll footage, photography, music and captions (in multiple languages) were incorporated into the editing process to supplement the stories. 

The videos series includes six single-storyteller videos featuring personal and professional stories. Consistent visual and audio quality supported six additional video compilations, weaving together several team member perspectives to bring complex concepts like EVP and culture to life. 

The Employee Story Series 

The Philips employer branding and recruitment marketing teams were extremely happy with the employee story series. Maria Eugenia Velandia, Manager, Employer Brand & Recruitment Marketing, The Americas at Philips says,

“We are very proud of the work that was done for the Employee Stories series. We were able to adapt to the challenges that the pandemic presented to us and produce an outstanding series of videos that truly represents Philips, our brand, our culture and our purpose.” Maria Eugenia Velandia, Manager, Employer Brand & Recruitment Marketing, The Americas at Philips

The 12 videos communicate Philips’ culture and EVP, and also serve specific hiring needs, targeting candidate personas. 

Philips Culture and EVP

These three EVP videos directly ladder up to the three pillars of Philips’ EVP. 

At Philips, you reach your highest potential

This compilation video features several team members, in various positions and locations, sharing stories of ways they’ve been mentored and had opportunities to lead and grow at Philips. 

At Philips, we create impact 

Team members share stories of the direct connection they feel to the Philips company mission in this compilation video. They tell of the link they feel to the strategies they are developing and the changes they’re contributing to in healthcare. 

At Philips, our culture is unique 

Professional and personal stories of employee experience communicate out-of-the-ordinary support and appreciation for team members, and a one-of-a-kind way of thinking and working together. 

Identifying Opportunities 

Erika, part of the Quality and Regulatory team, shares a story of identifying a problem and seeing it as an opportunity. She tells how it resulted in developing a new product, and shares that process, from investigation to troubleshooting to completion. 

Mentoring youth at Philips

Research scientist Amir shares the story of his idea to launch a program to mentor youth from the community by introducing them to STEM practices in healthcare. His story communicates Philips’ culture that supports employee’s ideas and investing in the healthcare leaders of tomorrow. 

Liderando equipos en Philips (Translation: Leading teams at Philips)

Lin’s stories of a long career at Philips, full of leadership and growth, communicate Philips’ internal mobility and career opportunities. Recorded in both Spanish and English, this multilingual storyteller content can connect with global audiences. 

Philips key hiring area: Sales 

Demystifying patient care at philips .

Kim shares stories from her career on the sales team at Philips, from special scanners to mentorship opportunities.

Innovación y crecimiento (Translation: Innovation and growth) 

Alejandra tells us about her experience in the sales team and how Philips has helped her develop in her professional career.

Philips key hiring area: Precision diagnostics 

Precision diagnostics at philips .

Krishna shares his passion for the Precision Diagnostics work, mission, and the impact the business is having.

Philips key hiring area: Marketing transformation 

Marketing transformation at philips .

Members of Philips’ marketing transformation team share their experiences and stories of helping find solutions in the healthcare market. They explain the personal, intangible rewards of being part of innovations that help patients personally, and change the market globally.

Philips key hiring area: Engineering  

From the technology to the device at philips .

In this video optimized for social channels, team member Jonathan tells how different engineering teams work together in shared purpose at Philips. 

Colaboração em uma empresa global (Translation: Collaboration in a global company)

Engineers working in architecture and software development at Philips in Brazil share stories that show that their jobs go far beyond writing code. They share how their innovative solutions help thousands of patients each year. Recorded in Portuguese, this video serves as great regional recruitment marketing content. And, its additional versions with subtitles in English and Spanish provide strong global content, too. 

Bonus Video

Philips cares for employees.

Erika shared an incredible story that communicated the deep, authentic care Philips shows employees. We didn’t want to leave this great story on the cutting room floor, so we captured and produced this one as a gift for the Philips team. 

A pandemic did not stop the Philips brand team from innovating

The Philips employer brand team was able to collect compelling stories of its culture and execute its recruitment marketing content plan … even in the midst of the global COVID-19 pandemic. As true to their brand, reputation and history, Philips was flexible, innovative and creative in the face of a challenge. They were able to create compelling recruitment marketing content that supported their hiring goals. 

Additionally, this new process Latin American team members to be included in the project. Stories Inc. used the virtually-captured footage and wove it together with Philips’ b-roll, original graphics, captions and more professional post-production techniques. The results were videos honoring the stories, and brought Philips’ EVP, targeted team cultures, and universal culture to life. 

Did our Philips case study provide you with inspiration to capture stories from your team members?

Contact us to discuss how stories can communicate your culture..

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The Caregiver

The creator, the explorer, the innocent, the magician, the regular guy, search by category, search by archetype.

Brand Strategy / Positioning

Electronics & technology  –  home appliances , TV sets and home cinemas , healthcare solutions

Owner of the brand

Koninklijke Philips N.V.

Key competitors

Sony , Panasonic , Samsung , LG , Siemens , General Electric

Introduction

Brand strategy analysis, brand essence.

Making the world healthier and more sustainable through innovation.

Brand Values

Innovation, care, empowerment.

Brand Character

Innovative, pioneering, serious, caring,  empathetic , supportive.

Dominating Archetype

Philips’ heritage dates back to 1891 when Frederik Philips and his son, Gerard Philips, started manufacturing light bulbs in Eindhoven, the Netherlands. The company quickly became an international success and was one of the 20th century’s biggest electronic multinationals operating across a vast number of categories ranging from shavers to TV sets. At the beginning of the 21st century, Philips shifted its strategy from being a diversified conglomerate and repositioned itself as a company with a clear focus on health technology.

The biggest changes in Philips’ business strategy were initiated after the appointment of Frans Van Houten as CEO in 2011 and the subsequent introduction of the Accelerate! programme 1 . Philips went from a centrally managed company with a wide portfolio of products to a much more efficient organization with stronger local teams and a streamlined offering that focuses on products which measurably change people’s lives for the better. In 2013 the company also announced a new brand vision, which is to make “the world healthier and more sustainable through innovation” 2 . Frans van Houten, Philips CEO said: “ We believe that the new brand positioning much better reflects Philips’ mission to improve people’s lives through meaningful innovation. As a technology company, our commitment is to deliver innovation that will drive our future growth and matters to people. We will make healthcare more affordable and accessible through innovation. ” 3

Although innovation has always been part of the Philips brand strategy, changes to its business strategy now show that ‘meaningfulness and care’ are core tenets of the company’s brand equity.   Philips highlights its clear focus on ‘meaningful innovation’ as a key factor in what differentiates the company from other innovation-based companies (for which being innovative is an end goal in itself). Philips strives to build an image of an organization investing only in the innovations that matter to consumers and therefore proving that Philips cares about their well-being. To stress this shift in strategy, Philips replaced their old tagline of “Sense and simplicity” with “Innovation and you”.

Philips also highlights changes in its product roadmap which were made to better reflect the company’s brand mission of moving from TV sets and home cinemas to healthcare and well-being solutions including breastfeeding products, electronic pain relief solutions, respiratory solutions and ultrasound products that reduce infant mortality. Eva Barrett, Global Head of Brand Marketing Communications at Philips, told Marketing Week: “ It will take time to fully change people’s perceptions away from the image of Philips being all about, say, TVs ” 4 .

Philips’ brand equity – despite having some elements of  the Sage  archetype where there is a focus on research and science – is mainly based on   the Hero   archetype which solves concrete health and well-being problems, enables people to do things they couldn’t do before, e.g., helping people who have respiratory problems to sing or exercise 5 , and measures the efficacy of all their efforts. In fact, Philips aims to improve 3 billion lives by 2030 and has a robust approach to the measurement of these improvements. Philips – proving that the brand cares about its consumers, i.e.,  the Caregiver  archetype – has also made a commitment to build a healthier society and to focus on products that truly change people’s lives rather than just their social status.

“Innovation and you”

Most important campaigns.

1. “Philips Sonicare Teeth Whitening Kits” (2024)

2. “Philips PowerPro Aqua FC6404” (2019)

3. “Baru! Philips Shavers – Star Wars: The Last Jedi Edition” (2017)

4. “Building A Healthy Society” (2016)

5. “Philips Technology” (1987)

Official Brand Statement

“ Royal Philips of the Netherlands is a leading health technology company focused on improving people’s health and enabling better outcomes across the health continuum from healthy living and prevention, to diagnosis, treatment and home care. Philips leverages advanced technology and deep clinical and consumer insights to deliver integrated solutions. The company is a leader in diagnostic imaging, image-guided therapy, patient monitoring and health informatics, as well as in consumer health and home care. ” 6

Interesting Facts

Philips, together with Sony , launched the Compact Disc. 7

Founder Gerard Philips’ father Frederik Philips was Karl Marx’s cousin. Frederik Philip’s paternal aunt was Marx’s mother . 8

1. Interview with Jeroen Tas, Chief Innovation and Strategy Officer at Philips A. Azis, “The Power Of Purpose: How Jeroen Tas And Philips Are Creating Healthcare With Empathy”, Forbes, Sep 2019, https://www.forbes.com/sites/afdhelaziz/2019/09/15/the-power-of-purpose-how-jeroen-tas-and-philips-are-creating-healthcare-with-empathy/#48edef73de08

2. Advertising Age on Philips’ audio branding A-C. Diaz, “Philips Created Its New Identity With The Sound Of Light Bulbs”, Ad Age, Dec 2018, https://adage.com/creativity/work/philips-philips-instrument/961871

3. Marketing Week on the launch of the “Innovation and you” tagline R. Parsons, “Philips Introduces ‘Innovation And You’ Strap In Marketing Overhaul”, Marketing Week, Nov 2013, https://www.marketingweek.com/philips-introduces-innovation-and-you-strap-in-marketing-overhaul/

http://www.usa.philips.com/ , http://www.philips.co.uk/ ,   https://www.facebook.com/PhilipsUK , https://www.facebook.com/Philips , https://twitter.com/Philips ,  https://en.wikipedia.org/wiki/Philips ,  https://www.instagram.com/philips/ , https://www.youtube.com/user/Philips , https://www.linkedin.com/company/philips

• M. Steinglass, “Philips Restructuring Starts To Pay Off”, Financial Times, Oct 2012, https://www.ft.com/content/5149cb94-1c28-11e2-a14a-00144feabdc0
• https://www.philips.com/a-w/about/company/introduction.html
• “Philips Unveils New Brand Direction Centered Around Innovation And People”, Philips News Center, Nov 2013, https://www.philips.com/a-w/about/news/archive/standard/news/articles/2019/20191031-healthcare-innovation-in-the-cloud.html
• T. Hobbs, “Philips Unveils Tearjerker Ad As It Aims To ‘Fundamentally’ Change Its Brand Perception”, Marketing Week, Nov 2015, https://www.marketingweek.com/2015/11/19/philips-unveils-tearjerker-online-ad-as-it-aims-to-fundamentally-change-its-brand-perception/
• https://www.youtube.com/watch?v=oj7OKrGb0J8
• https://www.philips.co.uk/a-w/about-philips/company-profile.html
• https://en.wikipedia.org/wiki/Philips
• https://en.wikipedia.org/wiki/Gerard_Philips

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