Philips is the leader of most of its product categories in the market. It has a 45.8% share of revenue in the audio market. It also has a leading market share in lighting systems. 3 out of 5 Television in India have Philip’s invented chips.
It has been staying on the top of the market for many years with its amazing marketing mix.
Thus this makes us keen to know the marketing mix of Philips. In this blog, we will be looking at the 4P’s marketing mix which are the Product, Place, Price, and Promotion.
Before we see its marketing mix let us know about Philips as a company.
About Philips
Philips was established in the year 1891 by Fredrick Philips and Gerard Philip. It is a Dutch company. It deals in a wide variety of consumer lifestyle and health care products.
It is the world’s largest electronic company and markets itself in this field through its tagline-
“Unlock the future with the power of Light
In the past 5 years, it has made an investment of over US$ 150 million in Indian operations. It is Rated no. 16 in the Economic Times Brand Equity – India’s Most Trusted Brands 2003 survey.
Philips is divided into 3 main parts:
- Personal health
- Connected care
- Diagnosis and Treatment
Some of the competitors for Philips in the market are:
- LG
- Panasonic
- Sony corporation
- Samsung Electronics
Let us now see the marketing mix of Philips.
Marketing mix of Philips
Marketing Mix generally refers to the strategies or tactics adopted/used by the company to promote its product or brand in the market. The 4P’s generally make up the marketing mix which consists of – Product, Place, Price, and Promotion.
This helps the company to see how they perform in the market.
Let us first start with the Product mix of Philips.
1. Product Strategy
The first step in Philips Branding Strategy is its product strategy. It is one of the biggest companies in the electronics industry. To innovate its products in the best possible way, it has employed advanced engineers and the latest technology to produce and manufacture new and better items. It aims to make the lives of its users much easier and works with the aim of-
“Innovation and you”
The product line of Philips can be classified under three broad categories-
Consumer Lifestyle, Lighting, and Healthcare.
Under the category of Consumer Lifestyle, Philips manufactures-
- Colour televisions that are available in various sizes like fourteen inches, twenty-five inches and, plasma twenty-nine inches
- Audio Equipment like transistors, MP3 Player
- DVD Player
- Electronic Toaster
- Electric Shaver
- Lightning goods like lamps, luminaries, tube lights, Lightning services, and solutions.
- PC products and phones, mobiles, drives, and storage, etc.
- Accessories: home entertainment accessories, cables, etc
Under the Healthcare division, Philips offers the following products:
- Diagnostic ECG, Clinical informatics, Computed tomography, Hospital respiratory care, etc.
- Clinical Informatics and Patient Care
- Defibrillators
- Imaging Systems
- Diagnostic Monitoring
Philips has also introduced a parent monitor that helps the patient’s to monitor using their mobile.
Under the Lighting division, Philips offers the products for Indoor luminaires, outdoor luminaires, solar lighting, Master Led tube, etc.
Philips has also joined hands with various other companies to develop new and innovative products. It is in collaboration with 20 other companies at present. The brand has 50000 patents registered under its name with 36000 trademark and 63000 design rights registered under its name.
Let us now see the Place mix of Philips.
2. Place Strategy
The next step in the Philips Marketing plan is the place strategy of Philips. It employs 1,20,000 people for its service and sales section. For the marketing of its product, Philips has employed sales subsidiaries and local distributors.
Philips mainly sells its products through two marketing channels which are:
- It sells its product directly to consumers through its online website.
- It sells its products to wholesalers who then sell them to retailers located all over the country.
Then through this, it finally reaches the ultimate consumer. They also provide free installation and product service.
The reason for the success of the company can be given to its distribution strategy. Philips has its products presented to over 500 suppliers all over the country. It follows an intensive marketing strategy where it tries to include its products to as many retailers as possible to ensure that its products are easily available to all the customers.
Philips also has a considerable amount of online sales with a significant amount of traffic on its website. To provide timely delivery services, it has partnered with various delivery service providers to run its online operations smoothly and efficiently.
Let us now see the Price mix of Philips.
3. Price Strategy
The price strategy of Philips refers to the Price Mix of Philips. To survive the cut-throat competition, Philips keeps its pricing policy simple. The company has decided to not compromise on the quality of the products even if the products have to be priced higher than that of the competitors.
However, Philips follows a competitive pricing strategy where its products are priced at a nearby range than that of its competitors. As the prices are nearly the same, the consumers think and have a choice to purchase better quality products.
Thus, Philips has been able to hold a significant market share and generate a high level of revenue and sales. In some cases, it also follows a Flexible Pricing Strategy where it gives additional discounts and coupons to bring down the price to some level.
Lastly, let us see the Promotion mix of Philips.
4. Promotion Strategy
Philips uses a multichannel approach to promote its brand and products. The company is engaged in promotional activities on Social Media, TV, Print, Radio, events, and sponsorships as a part of the Promotional Mix.
It has also hired some celebrities for its promotion. It has also created some very innovative ads. It has starred actor Ranbir Kapoor in its Philips LED Ads, whereas, actress Alia Bhatt and actor Arjun Kapoor in various other ads to endorse the brand.
Philips also offers various discount cards and coupons as a part of its sales strategy. It also sponsors various events and sports teams like Australian Rugby, India Commonwealth games, and F1 Race. It also sponsors the ‘Monster of Rock Festival’.
Philips is also active on social media like Twitter, Facebook for resolving customer issues and for better connectivity with people to increase brand awareness.
It has also launched an integrated marketing campaign to promote its brand proposition ‘innovation and you’ and the concept of green energy to make people’s lives better which was well received by the audience.
Conclusion
Philips is India’s largest and one of the most preferred lighting and healthcare instruments companies. It has complete control over its technology and core components. The company has a strong potential to grow and expand further through greater innovations.
It has been providing a large variety of products in the market making them their name in every sector.
They have a well-planned placement strategy for their products which makes their products available everywhere in the country.
They have been using a competitive pricing strategy that is priced around the higher side than its competitors because they don’t compromise on the quality of the products in the market.
They have been promoting their products on all different channels and have been hiring actors for the promotion of their products too.
In conclusion, Philips is a well-established brand that is at its best in the market and still growing.
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