philips, jos caelers

Jos Caelers Digital Marketing group October 13, 2011

Digital Marketing Enabling growth for Philips

Confidential Digital Marketing group, October 13, 2011

Founded in 1891 Headquartered in Amsterdam, the Netherlands

Sales over EUR 26 billion (USD 33 billion) Over 30% in emerging economies

>118,000 employees Sales and service outlets in over 100 countries

Globally recognized brand (world top 50) Our brand value almost doubled to $8.1bn since 2004

€1.8 billion investment in R&D, over 6% of sales 55,000 patent rights – 33,000 registered trademarks – 49,000 design rights

A well-respected, blue-chip company for over 100 years


11% 15%

42%1

37% 35%

28%

Healthcare

Lighting

Consumer Lifestyle

Components

Semiconductors

Business electronics

Origin

Building a leading company in Health and Well-being

2009 indicative sales split

Over the past decade we have fundamentally simplified our business portfolio, investing proceeds from disposals in our Healthcare, Consumer Lifestyle and Lighting businesses

7%

13%

9% 3%

1998 actual

sales split

1 - Consumer Lifestyle in 1998 includes the former DAP and CE divisions


Aging population The number of people aged over 60 will double from 500m today to 1 billion by 2015.

Emerging markets 99% of future population growth will be in emerging markets. Emerging markets already produce 28% of global GDP.

Empowered consumers Demanding solutions to fulfill their personal needs.

Climate change and sustainable development 19% of global electricity consumption is used for lighting. We can save 40%...or 600 power stations worth of energy!

Our Health & Well-being portfolio leverages critical global trends


Our brand promise

Designed around our customers

Easy to experience

Advanced


Marketing strategy Example Healthcare

•  Strengthen our brand in Healthcare

•  Create more promoters

•  Focus on clinical staff/management

–  high interest in communities

•  Build relationships

•  Facilitate dialogue

•  Be trustworthy/credible

•  Focus on strengthening existing relationships

–  70% of revenue comes from services

Confidential Digital Marketing group, October 13, 2011 7

Philips LinkedIn Survey findings

Innovations in Lighting group: •  Awareness (+20 pts), key

attributes for “meaningful innovations” (+17) and “authoritative voice” (+8) and purchase consideration (+3)

Innovations in Health Group •  Awareness (+28 points),

purchase consideration (+7 pts) and attributes for “meaningful innovations” (+6) and “an authoritative voice” (+7)

•  The group on LinkedIn allowed Philips to build a large community of people within their target audience

•  The people who joined the group are more influential than the average person within the target

•  People who are part of the community have a more favorable impression of Philips


Sales

Traditional Marketing and Sales funnel

Marketing


•  Digital bridge that need to be constructed between Marketing and Sales

9

Sales

Digital Marketing @ Philips

Marketing

Digital bridge


Digital bridge

In order to realize this a number of pre-conditions need to be brought in place:

•  Handshake M&S: clear agreements on roles and responsibilities

-  Single database: clear definitions on what is a qualified lead, what customer insight is needed

-  Define End2end processes and measurement: Avoid sub optimization

-  Social integration: In order to provide a 360 view social is key as a lot of conversation take place there (open or in closed environment)


Philips has build many best in class components for online marketing enablement

Search engine marketing platform

Email marketing platform

Online Advertising

platform

Website

Behavior targeting solution

Measurement platform

Forms CRM / Lead platform

Community platform

Social presence

Lead qualification call

center


Pain points have been identified regarding B2B marketing….

12

Intelligent Marketing Automation addresses critical pain points and build the digital future

We lack a platform that connects all components seamlessly together

• Easy to create multi-touch point campaigns

• Easy to deploy customer nurturing strategies

• Integrated to deliver end-to-end experience to customer

We lack speed in adopting new technologies

• E.g. social login, call center integration…

We lack insights

• Customer insights based on all customer interaction

• Holistic campaign reporting

Objectives of the Intelligent Marketing Automation (IMA)

• Empower the business marketing employees to run automated marketing campaigns independently

• Provide deep customer insight during the end-to-end process from marketing to order

Example capabilities provided by IMA

•  Target the right buyer

•  Get the right leads for sales

•  Nurture leads automatically

•  Deliver sales intelligence

•  Do more with less

•  Measure everything

•  Easily execute campaigns

•  Revenue performance

management

…. which will be addressed by the new Marketing Automation program…

… to deliver best-in-class capabilities to Philips marketeers and sales


A gradual approach with simultaneous innovation and deployment track


Lessons learned

Positive •  Integration of different touch

points and measurement of effectiveness

•  Shows that IMA can stretch the interactivity around an event (pre, during and after)

•  Good insight on the impact on process, system and people

•  Pilot experiences provide a good starting point for change management

Improvements •  Involve sales from the start;

Marketing adds not only value to the sales funnel but also contributes to decision support

•  Lead scoring/ Qualification should be part of the process to be able to transfer the leads

•  More information on the local organization needed upfront (business readiness assessment)