Philips 2012 Annual Report Download - page 20

3 Our strategy in action 3 - 3
20 Annual Report 2012
marketing capabilities and resources in North America.
And crucially, we are spending more time talking with
Wal-Mart.
Straight talking, fruitful dialog
The impact of this end-to-end journey has been significant,
as Michael Smith, Senior Director for Personal Care at
Wal-Mart, explains: “The shaving aisle for Wal-Mart is
very important as almost all American males aged 16 and
older buy products from these categories. I see
tremendous potential when we combine Philips’ ability to
innovate and create demand for new products with our
collective ability to simplify the shelf.
“If we really collaborate, it’s about getting deep with our
customer, understanding what they’re looking for and
how we can help bring it to life at our store with your
brands. And I think that’s probably been the biggest
change I’ve seen from Philips: taking a step back and
looking at what’s important to us as a customer and
finding a way to deliver it over a long-term horizon.
“Our relationship today with Philips has changed a great
deal, and much of that centers around the fact that we’ve
got into some very honest and candid conversations. One
of the great things about end-to-end is that it forces us
both to get more focused on the shopper, digging deep
and really understanding what our consumer needs, what
their different needs are, and how we can bring it to shelf
in a product that they will leave our store more satisfied
with.”
Dedicated solution
As part of Wal-Mart’s ‘store of the community’ strategy,
our team has now developed our first product to address
the specific shaving needs of African-American men, such
as ingrown hairs. By working with Wal-Mart and
leveraging partners like Bump Patrol, a highly successful
skincare brand among African-American men, we have
brought this exciting new proposition to life – with launch
scheduled for Q1 2013!
With end-to-end, one of the building
blocks of Accelerate!, we are building
a winning value chain – innovating
and executing with higher speed and
excellence in order to deliver
superior customer and consumer
value. Each transformation follows
three steps:
Define how to win
We look at the market through
three lenses – the consumer, the
customer and Philips – and define
what type of customer value chain
we need to outpace the competition
and deliver on our plans.
Design the highways to market
Based on those needs, we redesign
our customer value chain processes
(Idea to Market, Market to Order
and Order to Cash) to deliver the
required end-to-end performance.
Make the change happen
We design and implement a rigorous
transformation plan.