Market Segmentation of Philips

Health should always be your main focus in life. It is essential to make sure that your lifestyle is healthy and you do everything in your power to maintain it. Many companies out there aim to help people reach that goal. One company like such is Philips. This company was established over 130 years ago, and throughout time, it has continuously bettered people’s lives with a relentless stream of ground-breaking advancements. For example, during the 1900s, Philips got to be the biggest private manager within the Netherlands, with over 2,000 workers. This blog will analyze the marketing tactics of Philips to understand its success better.

To begin with, we are going to discuss the segmentation strategy of Philips.

In this video, we are following a man’s morning routine. We see how he uses a regular razor for shaving, but he gets a cut. And that is when the Philips AquaTouch shaver comes to the rescue.

Say goodbye to razor burns. This tool features 3D floating heads that guarantee a clean shave. It also has a skin protection design that controls the contact between the blade and your skin.

Shaving this tool could be even be considered fun because the process is pretty smooth. And then your face is very soft and smooth.

Towards the end of the video, we also see the dynamic between the guy and his spouse.

What can we gather from this video?

The first hint that we receive is positivity. Overall the whole ad is full of optimism and good vibes. That refers to the music we hear, the approach of the guy in the video, etc.

Secondly, we immediately sense the importance of family. Even the fact that a few seconds of this video are in devotion to somehow show the relationship between these people is enough.

The segment that Philips has chosen to target is Balancers.

Lifestyle and values:

Balancers are open, positive and yearning individuals continuously attempting to get advantage out of everything. A striking knowledge of balancers is how they continuously attempt to adjust their life. This causes a steady level of blame in them.

When Balancers are working, they feel bad for not investing time with their family. When they are with their family, they feel horrible for not dedicating enough time to work.

When they are with their companions, they feel as though they are not investing quality time with their spouses. This causes a huge pressure in their life.

The family is exceptionally vital for the Balancers. They are concerned about their well-being. In case they cannot work then they cannot give for their families.

Balancers need a steady family life.

They like to seek after a life full of challenges where they are open to new aspects and enjoy variety.

Indeed in spite of the fact that Balancers look for new concepts in their life, they are to some degree grounded by their comfort zone.

This segment needs to have control over the different assets that they require. It provides them with a sense of safety.

Balancers are mostly college graduates, being reasonably well taught and decently intellectual. They are always in search of new information.

For them, work is more of a long-term career than simply a means of providing for the family. Balancers always seek new heights in their career.

They understand that this asks for huge sacrifices from their family. Balancers try to make sure that what they do proves fairly to the people surrounding them.

Balancers both focus on others and themselves. They can work alone or in a group. When it comes to decision-making, this segment always speaks up about their thoughts. This makes it that their colleagues highly respect them.

Balancers favor working at companies that are socially responsible and return something back to society.

Balancers are for the most part open-minded and deeply care about society as a whole. If they think their opinions could change something for the better, they will not hesitate to voice their thoughts.

Relationships are a significant aspect of Balancers’ lives. When they are young, they are incredibly social and hang out with friends a lot.

However, as they grow up and become parents, the priorities of Balancers change, and they focus more on their families.

Balancers believe that relationships should be long-term. Hence why, they stay committed to their spouses when they get married. Also, this segment always solves the arguments between them and their loved ones.

Attitude to shopping:

Balancers anticipate advertisements to be engaging and unique. Advertisements need to be creative to grasp the attention of this segment.

Balancers are open to trying new products. However, they need to have some information about them beforehand. If this segment ends up feeling that a product is worth buying, they will make a purchase.

Balancers are generally pretty smart when it comes to shopping. They prefer the products that they purchase to be of good quality.

However, that approach does not take away from searching for sales or discounts.

Once this segment finds a brand they like, they stick to it.

Balancers devote one day from their week to grocery shopping for the family. That also enables them to spend some extra quality time with the latter.

This segment searches for healthy and good-quality and healthy food. But even here, Balancers look for good deals.

Interesting facts about Balancers:

Balancers

• Usually practice their hobbies with their family
• Are keen on a healthy lifestyle and try to exercise whenever they find the time
• Enjoy doing outdoor stuff with family, such as visiting parks
• Also enjoy going to different venues with their loved ones during the weekend
• ​Love occupying themselves with relaxing activities, such as reading and watching TV
• Mostly watch traditional TV channels
• Are interested in sports
• Are above-average internet consumers and use it for all sorts of purposes
• Should always hold information on what is happening in their surrounding world

​Moving along, we are going to take a look at the positioning plan of Philips.

With the branding and situating methodology, precisely “sense and simplicity” Philips points to supply imaginative, basic, and ready-to-use goods. The company holds a thought that advancement is significant. That is because it fulfills individuals of their wants and needs that have not been met. The items that this company makes come true as a result of in-depth planning.

The needs of buyers are the most important factors that Philips takes into consideration. The company has positioned itself as a brand that wants to make people’s lives better through developments that are significant. The R&D endeavors are adjusted according to the wants of the shoppers as well. Phillips incorporates a built brand picture that permits buyers to trust its items.

For Phillips, the individual care trade falls beneath the question stamp category since the company makes an exceptionally small profit from this sector. The star category is the healthcare commerce and domestic appliances division since the company picks up noteworthy profit from this division and is putting all its power into its growth. Phillips is a worldwide advertising pioneer and has recognized the ability in this division. The company gets steady benefits from this division.

Ultimately, we are going to analyze the marketing mix of Philips.

Before all else, you may wonder what marketing mix means. It covers a few aspects of a company: product, pricing, place, and promotion. And since all of those concepts start with the letter ‘p’, sometimes people indicate it as the 4Ps. Time to talk about those.

Product:

Philips is one of the greatest companies within the world to bargain in the electronics industry. The energy to discover and dispatch modern items has come to its top as different companies are competing against each other. They are trying to reach modern statures within the electronic industry.

Philips has utilized progressed engineers as well as the most recent innovation to fabricate way better and modern things so that the day-by-day lives of the customers get to be much easier. The product portfolio of Phillips comprises three segments which are Customer Lifestyle, Lighting, and Healthcare.

Under healthcare, its items include Clinical informatics Patient care, and clinical informatics, Imaging systems, Defibrillators, Diagnostic monitoring, etc. Philips has presented a persistent screen that makes a different patient’s versatile monitoring.

Under shopper merchandise, its item portfolio includes a Color tv that is accessible in various sizes, like fourteen inches. Then there are plasma twenty-nine inches, and twenty-five inches, Transistors Electronic shaver, Audio Hardware like transistors, MP3s.

Place:

Philips Company was established within the city of Eindhoven, and afterward, it spread its wings to at slightest a hundred other nations all over the world. It utilizes about 120,000 individuals for deals and its administrations’ segment.

Philips is on the continuous verge of the advancement of designs, fabricating, and deals of different products, devices, and instruments. And therefore, Philips has set up gigantic plants and stockrooms for this reason. For the showcasing of its items, Philips has named neighborhood merchants and sales subsidiaries.

Other than dispatching the products, the wholesalers and the retailers give additional administrations like the establishment of items and their overhauling.

Numerous retail shops give save parts of the products that demonstrate exceptionally supportive for the clients within the conclusion.

The victory of the company can be credited to its distribution strategy. Philips has set different objectives for each of its channels. That, in turn, has driven the development in the sales picture and has reinforced the brand picture of the company.

Philips has expanded its benefit centers from 125 to 190 as of late, with 900 professionals tuning in to the complaints of the items and giving suitable help.

The products are too dispatched through the strategy of coordinating deals through the web. Phillips has an official site where shoppers are able to form buys of the specified merchandise from anywhere in the world.

Philips has moreover joined hands with other shopping destinations that offer its products through their entrances. The web has demonstrated to be a major conveyance channel as well as an information-collecting center for the brand.

In this way, the company’s conveyance centers, retailers, departmental stores, and web are different imperative devices to reach the customers. Recently the brand has made a few changes in its conveyance arrangement by designating little domains to the wholesaler, who will end up dependable for a firmer grasp in their region.

The company has moreover presented a progressive iron that utilizes the innovation of steam for pressing their clothing at low heat.

The brand has gotten to be number one in irons that are accessible within the world. It has also created a healing light cover for babies. This has made a difference in Bilirubinemia treatment processes.

Philips has joined other companies to create modern and way better items. It has twenty such progressing associations in progress.

The brand has fifty thousand licenses enrolled beneath its title, with sixty-three thousand rights for plans and thirty-six thousand trademarks beneath its brand title.

Price:

To outlive in this competitive market, Philips has chosen to keep its estimating arrangements straightforward and clear. As the buyers have the alternative of obtaining from various companies, Philips has decided that it will not compromise on the quality of the products. Even when a few of its items are higher estimated than its competitors, that is not the case.

Be that as it may, most of its items have a competitive estimating technique where the things are estimated at an adjacent run from the competitors.

When the costs are about the same, the buyers have the choice of acquiring way better quality products. Consequently, Philips has been able to preserve its hold within the market and produce higher deals and incomes for its company.

In a few cases, in arrangement to create deals, the company moreover contains an adaptable estimating approach where it gives rebates to bring down the costs to a few degrees.

Promotion:

The brand Philips guarantees its clients subjective products, and its brand guarantee is “Sense and Sensibility”. Philips is one of the driving world companies that have received the method of eco-design.

Philips has joined in dynamic programs for “Green Item Sales” that is confirmed by a free third-party to donate it authenticity.

Beneath this, Philips takes care of vitality, productivity, reliability, squanders, and recycling. Philips has taken dynamic steps to rethink the picture of its company. It has made a few exceptionally inventive advertisements.

Actor Ranbir Kapoor is in Philips Driven advertisements, whereas Alia Bhatt Arjun Kapoor is in a few of its other advertisements. The special exercises are within the different tv channels, radio, web, magazines, and newspapers.

The brand has played its cost card advertising rebates and different coupons beneath its deals plans. It has indeed permitted portion plans or month-to-month installments to a few of the products. The brand has been acting as a support for different occasions, sports offices, and sports clubs.

Within the year 2008, it reestablished its “FI partnership”. It moreover has the naming rights of “Atlanta’s Philips Arena”. The brand has also supported the alliance group of “Australian rugby” from 1988 to 1993. It is additionally the major support for “Monster of Shake festival”.

Ultimately, Philips is an awesome company that has put so much thought and effort into its marketing tactics. It truly cares about the well-being of its consumers, which should always be a significant priority for any company. We introduced the segmentation strategy, positioning plan, and marketing mix of Philips in this blog. If it got you interested, be sure to check out our main website. We regularly come up with new engaging content there.