Philips 2008 Annual Report Download - page 81

Progress against targets
The Annual Report 2007 set out a number of key
targets for Philips Consumer Lifestyle in 2008. The
advances made in addressing these are outlined below.
Leverage post-integration synergies
Best practices from the former Domestic Appliances
& Personal Care and Consumer Electronics divisions
have been implemented across the new Consumer
Lifestyle sector. Marketing expertise from the previous
DAP organization, for example, has been applied in
the higher-volume electronics categories, and the supply
chain competences of CE have been leveraged across
the sector.
Open up new value spaces
Consumer Lifestyle’s application of insight and innovation
has helped it open up new and emerging value spaces.
With the stronger focus on consumer health and well-
being, categories such as the Sonicare oral healthcare
and Philips-Avent mother and child ranges have already
given Consumer Lifestyle a foothold in this area. With
the 2007 launch of the Water & Air category, the sector
started to focus on new opportunities. In this category,
the Philips brand is applied to the very basic necessities
of life in emerging and mature markets where the provision
of clean drinking water or purer indoor air can improve
the quality of life. In 2008 the Relationship Care category
was created as a platform to address a different aspect
of well-being and initially, in particular, the intimate needs
and interests of committed couples in the 35 to 55-year
age group.
Create a unified, engaged and high-performance
organization
Consumer Lifestyle brought together highly engaged
employees from the former DAP and CE organizations.
Integration-related communications focused on driving
a single-sector mindset, an initiative running in step
with the operational transition of activities into the
new sector.
The sector has focused strongly on creating the right
kind of empowered leadership to take it forward, with
an increased span of control and greater diversity in
terms of both gender and nationality. Consumer Lifestyle
has recorded an increase in employee engagement levels
related to its leadership, with the Philips Leadership
Index – reflecting leadership effectiveness and engagement
capabilities – rising by 4% over the year.
Whiter, healthier teeth
Consumer Lifestyle strengthened the scope of its
health and well-being portfolio for consumers with
several key product launches, such as the new Philips
Sonicare HealthyWhite whitening toothbrush in
Europe. This rechargeable sonic toothbrush lets the
natural whiteness of your teeth shine through.
Maximize our structure to be fully market-driven
Consumer Lifestyle’s structure – in particular, its
clustered sales organization – has reinforced the
sector’s market-driven approach, both geographically
and in terms of applying consumer insight, relevant
innovation and design to drive positions of strength,
such as its Shaving & Beauty, Domestic Appliances
and Peripherals & Accessories businesses.
Philips Annual Report 2008 81
122
Performance statements
114
Supervisory Board report
110
Our leadership
94
Risk management
70
Our sector performance
Consumer Lifestyle