case philips

Topics: Marketing, Shaving, Distribution Pages: 6 (2328 words) Published: February 11, 2015
1) What are the key success factors (KSFs) in the male shaving market? How are they different from the female shaving market?

Key success factors for male and female shavers are based on constant superior product innovation, marketing and brand building, product quality and establishing long-term relationships with customers, retailers and suppliers. In particular research and development have been represented for Philips the two key success factors to growth. Indeed, Phillips’s sales increased when the new rotating round head was introduced, and again with the introduction on the two-headed model, called “Egg, the Philishave 3, and introducing the CoolSkin with Nivea moisturizer. Also marketing represents, a critical key success factor: trough marketing campaigns Philips must communicate to the consumers not only the better quality of its product, but also its image, by trying in this way to keep a client a faithful customer, to convert the non-users, to enhance the level of use, and finally to increase sales. Through its marketing campaign Philips promotes its product as a top of mind by communicating the two principal key success factors: easy of use and speed . This can be illustrated by the electronic technology of the cordless shavers introduced in the 1980s. Not only the easy of use and the speed have been represented the two principal success factors: indeed, also skin and cut protection are two key factors for Philips products, which contributed to improve the image of its product, by giving to the final customers a better and more comfortable shaving. Philips have realized a critical brand positioning of its product through a diversification strategy which allows to separate men and woman shavers . Product shelf space, packaging, marketing message and product designs have been studied more carefully. Furthermore, women shavers require more innovative designs to enable easier body reach and handling. As a consequence, women bodies need more time than men with head and face only. Finally, brands for women cannot be marketed or sold next to men’s products. In the western world wet shaving is mainly popular among younger man whereas dry shaving is preferred by the elderly who love having a good look with efficiency, and time saving. Younger consumers, on the other hand, care more about having a perfect and groomed look that is difficult for electric shavers to provide, as well as lower prices. Another marketing key success factors to take in consideration for male electric shavers is the time to market and ceasing seasonal demand in Christmas and father’s day in which sales for electric shavers tend to be focused.

2) How can Philips increase the worldwide share of dry shaving?

Philips electric shaving is largely accepted by many millions of users: Firstly, because it makes you feel good;
Secondly, because the skin is really well cared with no irritation, nicks or cuts; Finally, it is convenient and saves time and money.

Moreover, we must also consider the market served by Philips products, in which the electric shaving seems to be mainly popular among the old part of population; Furthermore Philips has decided to focus on the dry shaving market by selling and marketing rotary shavers. First of all Philips dominated the electronic shaving market with 44% global market share in 2004. Followed at distance by his direct competitors, Braun with a 28% global market share; Panasonic with a 12% and, finally, Remington with a 10% global market share. Philips leadership in 2004 can be seen through the “Geographical percentage shares”, which shows that Philips is the first in the market of Middle East and Africa and is the second player in Asia Pacific. While Braun is number two in Europe, Latin America, Middle East and Africa. For Remington, the North America market can be considered a key market, where it has the second position. Finally, Panasonic competes mainly in Asia Pacific region where it has the...
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