Marketing Strategy of Philips analyzes the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). These business strategies, based on Philips marketing mix, help the brand succeed in the market. Let us start the Philips Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
The product strategy and mix in Philips marketing strategy can be explained as follows:
Philips is one of the leading consumer electronics brands. Philips has three business divisions in its marketing mix product portfolio. Each division of Philips has its own product line that caters to different target audience.
Philips Consumer Lifestyle division: Some of the product offering in this segment are
• Sound and vision: Philips TV, headphone, DVD player, home cinema sound etc.
• Personal care: Shavers, stylers and grooming kit, hair removal, electric toothbrush etc
• Mother and child care: bottle warmers and sterilizers, pumps and care etc.
• Household product: kettles, vacuum cleaners, air purifiers etc.
• Lighting: led bulbs, florescent tubes etc.
• PC products and phones: drives and storage, mobiles etc.
• Accessories: home entertainment accessories, cables etc
Philips Healthcare division: of the product offering in this segment are:
• Computed tomography, Clinical informatics, Diagnostic ECG, Hospital respiratory care etc.
Philips Lighting division: of the product offering in this segment are products for Indoor luminaries, outdoor luminaries, solar lighting, Master Led tube etc.
Other than products, Philips also provides Professional services to meet a business needs.
Some of the services offered are Project services, Philips lighting Capital, Advisory services, Lifecycle services etc.
Philips Price/Pricing Strategy:
Below is the pricing strategy in Philips marketing strategy:
Philips faces tough competition from Sony, LG, Videocon, Samsung etc. As the numbers of competitors are more in the electronic industry therefore Philips follows a competitive pricing strategy in its marketing mix for its products.
The reason for this pricing strategy is because buyers (consumers) have more bargaining power and can switch brands easily. Philips always focuses on providing best quality products to its customers as pricing are nearly same by all competitors. Philips also charges high prices for its new and innovative products that are not in the competitor’s product line like electric shavers, airfryers etc. Philips also sometimes follows flexible pricing policy and gives discount on its products mostly sold through ecommerce websites. For its business division of Healthcare and lighting the company charges premium pricing strategy for its innovative products and solutions.
Following is the distribution strategy in the Philips marketing mix:
Philips started its operation from Netherlands in the year 1891 and since then the company has grown exponentially. Philips sells its products in over 60 countries around the globe. The company uses both direct and indirect distribution channels. Philips has its own branded stores in places that sells and provides services for its products. The company also uses local distributors and sales force to connect with the customers. Philips has more than 950 strong channel partner networks, more than one million retail outlets across India present across 2993 cities and towns. For its professional businesses (Healthcare and Lighting division), the company directly engages with lighting specialists, contractors to intensify its distribution network. Philips has also paid special attention to enhance its distribution network in rural and semi urban areas by tying up with small retail stores to increase its brand awareness. Philips also uses online platform to sell its products.
Philips products can be purchased from any e-commerce website.
Philips Promotion & Advertising Strategy:
The promotional and advertising strategy in the Philips marketing strategy is as follows:
Philips uses omni channel to promote its brand and products. The company is engaged in promotional activities on TV, radio, print, social media, events and sponsorships as a part of its marketing mix. Philips has hired some famous celebrities like movie stars for its promotion. to endorse the brand. Philips also offers discount cards and coupons as a part of its sales scheme. Philips also engages in sponsoring various events and sports team like Australian Rugby, F1 race and India Commonwealth games. Philips also sponsors ‘Monster of Rock Festival’. The company is also active on social media like Facebook, Twitter for resolving customer’s issue and better connectivity with people to increase brand awareness. Philips has also launched integrated marketing campaign to promote its brand proposition ‘innovation and you’ and concept of green energy to make people’s life better which was well received by audience. Hence, this concludes the marketing mix of Philips.
Philips was founded in the year 1891 in Netherlands, and the founding members of the company were Gerard Philips along with his father Frederik Philips. The brand line of the company is ‘innovation and you’ which is in line with the mission of the company to make a positive difference in the lives of people. Philips has got three business division: customer lifestyle, healthcare and lighting, and is also a leader in consumer electronics like grooming products, electronics etc.
Philips Company began its operation by making carbon filament lamps and over the years of continued innovation the company is one of the largest electronic company around the globe with its operation spanning over 60 countries and a workforce of about 100,000 people. The company holds more than 165000 granted patents for its x-ray tubes, shavers, the very first audio cassettes and CDs and many more.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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