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Philips Puts Its Customers at the Heart of Its Product Innovations and Begins by Understanding Their Needs and Aspirations

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Philips Puts Its Customers at the Heart of Its Product Innovations and Begins by Understanding Their Needs and Aspirations CSB_048-049_Philips:250 x 342 3/6/09 09:12 Page 48 SUPERBRANDS 2009/10 superbrands.uk.com Philips puts its customers at the heart of its product innovations and begins by understanding their needs and aspirations. Focusing on the health and well-being domain, the company serves professional and consumer markets through three overlapping sectors: healthcare, lighting and consumer lifestyle. Throughout its portfolio, it demonstrates its innovation capacity by translating customer insight into technology and applications that improve the quality of people’s lives. Market 1.6 billion euros – more than six per cent of of clinical care teams and patients and Philips focuses mainly on the health and sales – into it. It currently has 55,000 patent includes cardiac care equipment and home well-being domain, manufacturing products rights, 33,000 registered trademarks and healthcare products. Its lighting sector aims and services for the professional and 49,000 design rights. It also runs one of the to introduce innovative and energy efficient consumer markets. largest design organisations in the world with solutions and applications for lighting, for both eight studios across three continents. the business and consumer markets. The Its sales total more than 26 billion euros consumer lifestyle products provide solutions (US$33 billion) and it employs 121,000 people It is market leader in cardiac care, acute care, to consumer needs, enabling people to live with sales and service outlets in 100 countries. home healthcare and energy efficient lighting. healthier and more fulfilled lives. Every day one million people buy a Philips Its product portfolio also includes lifestyle product (Source: Philips UK). More than products such as flat screen TVs, male shaving Achievements 30 per cent of the company’s annual sales and grooming, and domestic appliances. Philips is making significant strides in are from emerging economies. Philips is sustainability and offers green solutions across among the world’s top 50 most valuable Product its portfolio – from energy saving lighting to brands and its brand value has doubled to Philips manufactures products across three TVs, home theatres, kettles and more. In 2008 US$8.3 billion since 2004 (Source: Interbrand). core areas: healthcare, lighting and consumer Philips invested approximately 282 million Research and development is a vital part lifestyle. The healthcare sector is dedicated to euros in Green Innovations and launched 91 of its business and the company invests providing solutions designed around the needs new Green Products (those identified as having 1891 1910 1914 1927 1939 1983 Anton and Gerard Philips is the largest The company opens a Philips produces Its first electric A technological and Philips set up Philips & single employer in research lab, which results its first radios; by shaver is introduced cultural landmark, Co. in Eindhoven, the the Netherlands, with in its first innovations in x-ray 1932 it is the largest and the company the Compact Disc is Netherlands. It begins 2,000 employees. and radio technology. Four producer of radios now employs launched, illustrating by manufacturing years later, a medical x-ray in the world. 45,000 people. Philips’ dedication carbon-filament lamps. tube is introduced, marking to innovation. its entry into healthcare. CSB_048-049_Philips:250 x 342 3/6/09 09:13 Page 49 PHILIPS a significantly better environmental between the ages of 14 and 35 die every performance than competitors or single week from undiagnosed heart predecessors). Sales of Green Products conditions. By providing mobile screening rose to around 25 per cent of total sales in equipment and getting its employees to 2008, compared with 20 per cent in 2007. volunteer, Philips is helping CRY tour England to provide free cardiac screening for up to Winning 50 design awards each year, Philips’ 3,000 young people. worldwide design branch won 22 iF product and marketing was focused at product level design awards in 2009 alone. One was Promotion and varied for local markets. In 1995 Philips for the Wake-up Light, an alarm clock which In 2008, Philips launched a global brand introduced its first global tagline with a unified gradually brightens to simulate a natural campaign to highlight its health and well-being company look. sunrise, accompanied by natural sounds. In credentials among business influencers. The healthcare, the Kitten Scanner – which helps campaign includes partnerships with leading Brand Values teach children what happens during a CAT global media owners – such as CNN, The Philips brand promise to customers examination to reduce their fears – Financial Times, The Economist and consumers is ‘sense and simplicity’. In a and a handheld ultrasound system Group, CNBC and Harvard Business world where complexity increasingly touches also won iF awards. Review – and drives Philips’ vision and every aspect of people’s daily lives, Philips is thought leadership in the health and committed to understanding the needs and 2009 also saw the IEEE, the world’s well-being domain. aspirations of real people in order to deliver largest technical professional innovative solutions that are advanced and society, honour Philips with First staged in 2005, Philips’ easy to experience – and that ultimately an IEEE Milestone Award for ‘Simplicity Events’ act as a improve the quality of their lives. its contribution to developing the Compact platform for the company to demonstrate Disc (CD). This Milestone Award is only ever its commitment and leadership in delivering philips.com given to significant innovations that have stood ‘sense and simplicity’ to people. Events have the test of time for at least 25 years. been held in Paris, Amsterdam, New York, London, Hong Kong, Sao Paolo and most Things you didn’t know Recent Developments recently, Moscow. about Philips Philips believes that demand for healthcare products – especially outside the hospital – The company logo has been consistent since and high quality, energy efficient lighting will the 1930s. Until the mid-1990s its advertising Every day one million people buy grow by six per cent per year. As a result, a Philips product. it has focused activity on becoming the leading business within these markets. In Philips lights many international 2006 it sold its semiconductor and electronic landmarks, including the Hermitage components-related businesses and invested Museum in Saint Petersburg, the half the proceeds in acquiring further Eiffel Tower, Buckingham Palace, businesses in the target markets. These the National Theatre in London, the included Genlyte and Respironics in 2008. Pyramids, the National Stadium in Beijing and the ball at Times Square In the UK Philips is working with the charity (which will use up to 20 per cent less Cardiac Risk in the Young (CRY) to raise energy in 2009 than 2007, thanks to awareness and provide screening to prevent the use of LED lights). Sudden Arrhythmia Death Syndrome (SADS). Twelve apparently fit and well young people Although most people know Philips for TVs and shavers, Philips 1995 1997 2004 2008 also holds leading positions in the lighting and healthcare markets: it is The company sells In co-operation Philips unveils its Philips launches a market leader in cardiac care, acute its 300 millionth with Sony, Philips new brand promise of global brand campaign care, home healthcare and energy Philishave electric introduces the DVD ‘sense and simplicity’, to highlight its strong efficient lighting. shaver. which becomes the which marks a credentials in health fastest growing home commitment to and well-being. One in every three automobiles electronics product being a truly people- worldwide uses Philips lighting. in history. focused company..
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