Philips Marketing Plan

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Philips: Hue Marketing Segmentation University of Massachusetts Lowell Marketing Fundamentals 62.501.081 Roman Udin - Siena Banaag - Lauren Anderson Executive Summary Philips core lies in “Improving people’s lives through meaningful innovation”. Founded in 1891 by father and son Frederik and Gerard Philips, Philips & Company has now grown to over 122,000 employees in over 60 different countries. Philips, based in the Netherlands, is one of the largest electronic companies in the world. Philips offers a wide verity of products grouped across four sectors: Healthcare, Consumer Lifestyle, Lighting and Innovation Group & Services. Philips has launched, through research and development, many innovative products across all sectors, including their new and attractive Hue lighting solution. Hue is a Light Emitting Diode (LED) technology providing a vibrant, diverse and environmentally friendly (green) lighting solution. Hue is one of many LED solutions offered by Philips. Philips’ entire green lighting portfolio has seen sales increase from 2,970 million to 5,752 million Euros[1]. This represents a 93.7% increase or approximately an 18.74% growth year over year. LED sales accounted for a 41% increase from 2011 to 2012 and attributed to 22% of total lighting solutions sold. As technology and manufacturing advancement improve, the cost of LED light solutions will become more cost effective for the consumer. This provides an advantage to Philips as a market leader, but also poses a risk in terms of competitors who may position themselves, through penetration, by undercutting their current pricing structure. Philips has chosen to partner with Apple for the initial launch of Hue, but more needs to be done to secure their role as a market leader in this segment. To due do so and realize a 100% increase in

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