Since time immemorial, companies have engaged in extensive campaigns to increase their market niche, retain their clients and grow their customer base. But this seems to be changing in the contemporary business world. Unlike the times of yore, firms have taken more radicalized in marketing their goods and services. Companies currently strive to establish and build long-lasting and mutual relationships between their products and clients by understanding their client's needs and preferences. Naturally, if those leading the marketing activities do not understand the value of their products about their customers, they are bound to fail.
Goods Produced by Philips
Philips is one of the firms that manufacture high quality and durable products. They ensure that their clients get the best value for their money. The significant contributions that they have made in the industry can't be underestimated. They conduct the marketing, distribution, and manufacturing of their products, majority of which include products that are used for lighting. They make a variety of products such as domestic goods, professional products, and audiovisual equipment. They also make electronics that are used by various business organizations. Among the products that they manufacture are also medical equipment, consumer communication tools, and semiconductors.
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History of the Company
The firm was founded in 1981 by Fredrick Philips together with his son Gerard (Oster, 2017). The experience that his son had as an engineer with an American company was very vital in ensuring that the company becomes successful. He used his wealth of experience to pioneer the development of new and improved products that set them apart from other firms. He did various tests that led to the improvement of the bulbs that were being made by the company.
Philips Mission Statement
Since Philips corporation was founded, the multinational remains committed to improving peoples lives in disadvantaged and underserved communities through meaningful innovations. To achieve this, the company develops quality, and affordable products then distribute them across the world. Furthermore, the firm is focused on experts and innovations to benefit the young and underprivileged communities. The company has also committed itself to improving the lives of clients in Africa. Philips appreciates the enormous role that women play in bringing up tomorrows leaders and innovators and holding the societies together. Indeed, women are the fabric that holds the fabric together in many African countries. The company, therefore, strives to ensure that women have unlimited access to quality healthcare, food, and education. We as Philps firmly believe that a healthy and vibrant Africa starts with healthy African women. The fact that we have been present in the African continent for over a hundred years means that we perfectly understand the complexities of its diverse healthcare environment. This knowledge affords the unique company insights into the needs of these fantastic and hardworking women.
SWOT Analysis
As stated earlier, the company has gained a significant market niche globally due to its quality, eye-catching and affordable products. The firm enjoys numerous strengths that have enabled gain it gain an edge over its competitors. Strengths in the SWOT analysis are discussed below.
Strong Market Position across all Segments
Due to the innovative nature of the firm, it is present in diversified segments such as consumer lifestyle, lighting, and healthcare. This has landed the company into top 50 world’s most valuable, admired and respected brands.Additionally, Philips has affirmed its position in all segments of the globe which affords it significant bargaining power and a diverse customer base.
Inorganic Which has helped Increase Revenue Streams
Philips has made significant milestones in the last couple of years. The company has made several acquisitions that have enabled it to expand its operations and increase its profit margins. For instance, the acquisition of Blu Jay consulting, a healthcare company has opened revenue streams for Philips and activities for the future.
Weaknesses in the SWOT analysis
Product Recalls
The company has had several of its products recalled in the recent years. For instance, the much-publicised Halogen bulbs were controversially recalled due to safety and durability concerns. Such recalls impact negatively on the brand as well as financial losses. Besides recalls, the company faces stiff competition from well established electronic companies such as Samsung Electronics, Motorola and LG Electronics (mix, 2016) .
Opportunities
The company has an excellent opportunity to commence cell phones production since it accounts for nearly 70% of the materials used to manufacture Nokia phones. The technology industry is usually very competitive and requires brilliant minds to remain relevant. Two years ago, the company reached the milestone of 100, 000 proving that it is still a technological giant to reckon with( Hasseb, 2016) According to pundits, most products produced by Philips competitors are of lower quality and thus not popular with the second class who have an eye for quality.
Threats
The most prominent threat the firm faces is the emergence of electronic industries in Pakistan. These companies threaten Philips market share since they are adored by a vast majority of the Asian population. The company might have a hard time adapting to the market which could cause potential harm its profit margins.
Objectives
Some of the firm's goals include; Improve customer loyalty by improving the brand experience. This can achieve by manufacturing products that satisfy gaps that exist in the market. Secondly, the company hopes to increase the distribution of their products to far-flung areas. According to available data, most of the firm's clients are individuals aged 50 years and above. This is undesirable since the youth are left out. The business, therefore, hopes to become desirable to the young people.
Target
Philips has a wide range of clients from all walks of life. Currently, the firm hopes to reach young people who are just settling down after college.Additionally, the business also hopes to incorporate corporates and healthcare facilities in its client base. Another potential group is the retail outlets and consumer electronic shops.
Philips Marketing Mix( 4 P’s) Strategy
Product
Philips has employed highly skilled engineers as well as the latest technology to produce highly advanced produced so as t improve their client's daily lives. The firm's product portfolio consists of three major segments; healthcare, lighting and lifestyle. Under health care, the firm's products include diagnostic monitoring, imaging system, Defilbrattors and many more. The business has an online monitoring system that enables patients to check monitor the health status online. The company also manufactures high-quality consumer goods such as televisions and audiovisual equipment. A few years ago, the business introduced a revolutionary iron that uses steam to iron clothes at remarkably low temperatures.
Place
Despite the fact that Philips was established in Eindhoven, the firm has spread its operations to all contents of the world. The company has over 100,000 employees from diverse cultures who work either as sales representatives or engineers. Philips has numerous distributors that help distribute its goods. The company offers free installation to customers. Philips has countless retail shops that sell spare parts of the products and provide consultancy services to their customers. The company has a website from which customers can order goods from any part of the world at no extra cost.
Price
Due to stiff competition in the electronics industry, many companies have a penchant compromising on the quality of goods to appeal to many customers. Most of Philips products have a competitive pricing strategy where most of its goods are priced at nearby range from its rivals. The company also has a flexible pricing mechanism which guarantees discounts to loyal customers.
Promotions
Philips promises its clients quality and durable goods. Philips is among the world's firms that have incorporated the process of eco-design. Through ecodesign, the company promotes the use of green energy thus avoiding wastages. Philips has developed numerous entertaining and educative ads that feature celebrities. The company should adopt the use of [platforms such as Twitter and Facebook. Through social media platforms, the firm can reach many clients especially the youth and the middle class. The brand also sponsors various events and sports clubs across the world.
Implementation, Evaluation, and Controls
The marketing team will play the leading role towards implementation of the marketing plan. Furthermore, the firm will seek the business will seek the assistance of a marketing firm who will be charged with developing television and radio commercials. The marketing will be implemented in two major phases. Firstly, the marketing team will conduct extensive social media campaigns which will be followed by promotions. The plan will be evaluated every three months to ascertain whether we are on target, whether tactics employed are not working for clients or the budget has been overstretched. Some of the controls that will be employed will be the use of surveys to get customer feedback.
References
Hasseb. (201`6). SWOT of Philips. Marketing Dawn , Retrieved From; http://marketingdawn.com/swot-of-philips/.
Mix, M. (2016). The Marketing Mix 4P’s and 7P’s Explained. Marketing Mix , Retrieved from; http://marketingmix.co.uk/.
