Philips Electronics India Limited - Actual Problems!

As they write in their Strategic Focus agenda, as quoted from

http://www.sec.gov/Archives/edgar/data/313216/000095012310015062/u08188exv15wxby.htm

"Meeting people’s needs with “sense and simplicity”
 

People’s needs form the starting point for everything we do. By tracking trends in society and obtaining fundamental insights into the issues people face in their daily lives, we are able to identify opportunities for innovative solutions that meet their needs and aspirations.

Our “sense and simplicity” brand promise expresses a commitment to put people at the center of our thinking, to eliminate unnecessary complexity and to deliver the meaningful benefits of technology. Our adoption of Net Promoter Score (NPS), which measures people’s willingness to recommend a company/product to a friend or colleague, shows how we are doing in this respect."

They are not doing it on a localized basis. When a brand goes global, they target more and more local markets. Their main intention remains, to reach out to more diverse customers with different cultural and social buying behaviors. To do that they need to customize their brand according to the local requirements/demand. As the marketing Gurus say "Think Globally, Act Locally" - the mighty Glocal concept!

Which seems the Philips management is not very keen to work on for their brands marketed in India. What kind of add on values they have to provide to cater the Indian customers or what sort of advertisements they should come up with to attract new customers and to retain the brand image in the existing customer's mind, are some of the very crucial points which they seem to be not so inclined to.

Though they have mentioned in their official website that -

"Philips Electronics India Limited,... is the leading Health and Well-being company. Today, Philips is a simpler and more focused company with global leadership positions in key markets of Healthcare, Lighting and Consumer Lifestyle, addressing people’s Health and well-being needs and aspirations as its overarching theme."

"As one of the nation's most well-known and well-loved brands, Philips is a part of practically every Indian's life... Philips products find use in virtually every aspect of an individual’s daily life 24X7 - at home, at work, on the move and at rest. Philips stands as a source of easy to use, trendy and innovative internationally acclaimed products with superior design and technology that enhance the quality of consumers' professional and personal lives."

Philips is present in India for over 75 years. They have more than 4,500 employees pan India.  They have an excellent distribution and post-sales service network spread all over India. But yet they are failed to hold their place in the customers Awareness Set and Consideration Set.

When we go to buy any flat screen/ LCD/ LED TV in any shop, in most cases we don't even keep Philips as our consideration set. We all watch the Philips TV Ads, but none of us get really impressed by the word innovation in their ads. For us the words innovation and TV gives away brands like Sony, Samsung, LG, Panasonic, etc.

For me, it seems that the Philips management is not being able to convey the message (be it innovation or any other value proposition) to the end customers in a convincing, persuasive manner to get hold of a place in the customer's decision set.

For further reading -

http://www.dnaindia.com/money/interview_philips-will-invest-strongly-in-r-and-d-marketing-in-india_1282533
http://www.dnaindia.com/money/interview_philips-will-invest-strongly-in-r-and-d-marketing-in-india_1282533