Philips 2005 Annual Report Download - page 33

Philips Annual Report 2005 33
Building leadership
DAP strives to win consumers by offering them appealing
products that meet their need for home management and
personal wellness. In this way, it seeks to achieve and
consolidate leadership in its target markets through its
brands and, where appropriate, partnerships and alliances.
At the same time, the division is constantly pursuing
breakthrough concepts to accelerate growth and striving
to improve its operational performance, e.g. through asset
management and reduced product diversity.
DAP has a leading position in electric dry and wet male
shaving and grooming products. With the global introduction
of the Speed-XL and SmartTouch-XL shavers in the mid-
and high-end segments in the fourth quarter of 2005, DAP
strengthened its No. 1 position in electric male shaving. In
its beauty portfolio, the division has a range of products
for female depilation and haircare. In 2005, DAP recorded
higher sales of epilators and bikini trimmers in Western
Europe and of epilators and ladyshavers in Eastern Europe.
Intheeldofhaircare(hairdryers,stylers,etc.),DAP’s
market share in Western Europe increased.
In oral healthcare, DAP holds a leading position in the USA.
Sonicare toothbrushes are also marketed to key countries
such as Japan, South Korea, Germany, the United Kingdom
and the Netherlands. Higher sales of toothbrush handles
and sales of new products increased DAP’s share of the
US market in 2005. Also in 2005, DAP increased its share
of the Japanese market for electric toothbrushes, which
showed double-digit growth.
DAP also provides food and beverage appliances, such as
mixers, blenders, food processors and toasters. In Europe,
DAP holds a leading position in coffee makers including
‘Cleaner made Simpler’
The ultra-quiet, bagless Marathon launched in 2005 not only makes
cleaning effortless, but also offers high performance no matter how
long it is used for, thanks to its extremely high suction power and
uniquecycloneltersystem.
Senseo, the breakthrough concept for the traditional coffee
segment that was developed in partnership with Sara Lee/DE.
In 2005, Philips sold its ten millionth Senseo coffee maker.
This product was launched in Australia in 2005.
In 2004, Philips and InBev introduced PerfectDraft, a new
system that combines a high-quality appliance and
premium-brand beer in light metal kegs to give the great
taste of draft beer in the comfort of the home.
PerfectDraftwasrstintroducedinBelgiumin2004,
followed by Germany and the Netherlands in 2005.
In home environment care, DAP manufactures and markets
vacuum cleaners and irons. In 2005 most of the vacuum
cleaner range was renewed; this included an entry into the
growing segment of bagless vacuum cleaners. An Electric
Sweeperwaslaunched,asarststepintotheemerging
segment of ‘in-between cleaning’. 2005 saw the successful
launch of various new steam irons and system irons across
the globe. Market demand for these new ranges exceeded
expectations, growth being particularly strong in Eastern
Europe, Russia and Asia.
DAP is planning to expand its portfolio in the area of
wellness products for consumer applications. It expects
to do so by acquiring companies in this area as well as by
concentrating its R&D and business development activities
inthiseld.TheConsumerHealth&Wellnessbusiness
unit was launched in 2004 as part of Philips’ healthcare
and lifestyle strategy. In January 2006, Philips announced
that it has signed an agreement to acquire Lifeline Systems,
a provider of personal emergency response services, for
an amount of USD 750 million.