Philips 2009 Annual Report Download - page 65

“sense and simplicity” resonates with stakeholders and
customers. Since the launch of “sense and simplicity” five
years ago, Philips’ brand value has increased 85%.
Philips’ total 2009 marketing expenses declined nominally
to EUR 804 million, but as percentage of sales remained
broadly in line with 2008 levels. In 2009, Philips’ marketing
strategy showed an increased focus on organizing around
customers and markets. To that end, global investment
was tailored more substantially to strategic markets.
The corporate focus on thought leadership in Health and
Well-being also extended to Philips’ online marketing
strategies in 2009, where several new initiatives were
launched. Within the Healthcare sector, Philips expanded
its online presence via the launch of GetInsideHealth.com,
an e-service that delivers the latest news, views and
updates on technology innovation in health and well-
being.
In support of its sustainability campaign, the company
launched ASimpleSwitch.com to business stakeholders.
This online platform promotes smart energy efficiency
and consumption in the business and consumer space. The
company also leveraged social media capabilities to drive
marketing messaging and brand awareness via the launch
of Philips.Live.com, an internal and external video
platform that enables consumers, customers and
employees to share short video clips on their experiences
with Philips products and services.
In 2010, Philips will continue to leverage online and social
media to drive thought leadership in Health and Well-
being. Greater emphasis will be placed on increasing our
online presence in emerging and growth markets.
Driving sustainable customer engagement in concert with
our brand promise is essential to our company goals and
aspirations. We have used the Net Promoter Score (NPS)
since 2006 to drive our company’s efforts to improve
customer experiences at all touchpoints. The
implementation of this measure has confirmed that
outstanding customer and consumer loyalty are critical to
achieving growth. We continue to leverage NPS insights
to drive customer centricity and direct our market
strategy.
Our NPS has continued to grow each year. In 2009, we
achieved increased NPS leadership across our businesses
and as a result 60% of our businesses currently have
industry leadership positions. We noted strong
performance in the emerging markets China and India. In
more established markets such as the US and Germany
improvements were also achieved. In 2010, we will
continue to expand our coverage of NPS to include
additional strategic markets and cross-sector business
domains.
Marketing expenses
in millions of euros ■-in value----as a % of sales
1,200
900
600
300
0
12
9
6
3
0
3.3
829
2005
3.3
865
2006
3.7
994
2007
3.6
949
2008
3.5
804
2009
Research & development
Our Research & Development teams create innovative,
meaningful products and solutions for customers – a
critical driver of Philips’ competitiveness in its markets. By
maintaining our substantial R&D investments in 2009,
Philips has continued to expand its vast knowledge and
intellectual property base. Early involvement of customers
in new technologies, application and business concepts
ensures deep insight into their needs – the foundation for
our innovations. To better capitalize on opportunities in
fast-growing emerging markets, Philips is in the process of
reallocating EUR 250 million to innovation projects in
high-growth market segments. In 2009, approximately
one third of this reallocation was completed. Underlining
our focus on market-driven innovation, we have created a
Board function managing Markets and Innovation,
incorporating the role of Chief Technology Officer and
the responsibility for managing Corporate Technologies.
Research and development expenses
in millions of euros ■-in value----as a % of sales
2,000
1,500
1,000
500
0
20
15
10
5
0
5.9
1,495
2005
5.8
1,556
2006
6.0
1,601
2007
6.7
1,777
2008
7.0
1,631
2009
4 Our group performance 4.1.14 - 4.1.14
Philips Annual Report 2009 65