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Philips Launches Global Ad Blitz

Amsterdam, The Netherlands – Royal Philips Electronics said it has developed a $97 million global branding campaign for the second half of 2004 called “Sense and Simplicity,” which will tie together the company’s healthcare, lifestyle and technology businesses.

Royal Philips said the campaign is expected to promote its broad-ranging business objectives as a “sharper, and more focused” operation, which “is held together by a common drive to deliver intuitive end-user experiences.”

Gerard Kleisterlee, Royal Philips Electronics CEO, said “Philips is not the only technology company to grasp the need for simplicity – but I believe we’re the first to put a stake in the ground and declare our intent to take action. Others may aspire to be more fashionable, more cool. Our route to innovation isn’t about extra complexity – it’s about simplicity which we believe will be the new cool.”

For the campaign the “Sense and Simplicity” catch phrase will replace Philips’ former “Let’s Make Things Better” theme.

“With the One Philips strategy of the past years we see the emergence of another company where the marketing of our businesses is more aligned around a specific target audience and therefore we are now at a point where we’re able to get more specific for all of them. Now we’re able to tell you exactly how we’ll execute further change,” Kleisterlee said.

Kleisterlee said Philips has “clear ideas about how to consistently fill in empty spaces around our core competencies, often in the overlaps of the healthcare, lifestyle and technology domains.”

Going forward, the company plans to enter into new markets and create new categories guided by the new brand positioning initiative. As part of that effort Kleisterlee announced the start of a new business group for consumer health and wellness.

The brand campaign will focus on a core target segment representing “20 percent of people who do 80 percent of the buying,” Kleisterlee said.

“These are typically affluent decision-makers in the 35-55 age range and A/B+ category who share a dislike for the unnecessary hassle often created by technology,” he added.

Philips believes that the person purchasing a high-end flat TV could also be a manager responsible for purchasing medical diagnostic equipment at a local hospital. The campaign will stress simplicity with a “fresher, cleaner, and more human,” approach.

Each ad will tell a part of a story while reinforcing messages from other ads in the campaign. This will be executed using multiple insertions in consecutive TV commercial breaks – an approach the company called “absolutely unique in modern advertising.”

The campaign, which was developed by DDB, Philips’ global advertising agency, and media buyers Carat, will use broadcast, print and online vehicles in the Netherlands, Germany, France, Italy, the United Kingdom, China and the United States.