The Hindu Business Line : ‘People looking for health-enabling, hassle-free gadgets’

Would you see a business opportunity in the recent WHO (World Health Organisation) estimate that by the year 2020, non-communicable diseases, such as cancers, diabetes and obesity, that cause about two-thirds of the global disease burden, will go up by 40 per cent? Consumer durables company Philips did, and as Rakesh Sharma, Senior Director and Divisional Head (Domestic Appliances and Personal Care), Philips Electronics India, says, “Going ahead, the key demand will be for smart appliances which promise health and well- being to people and are also convenient to use. The health positioning has helped us market our products better, which in turn has added to our topline. We are confident that the company will grow significantly in the years to come.”

Excerpts from the interview:

When and how did you realise that the Indian consumer is looking for something healthier? What kind of research did you conduct?

Research is an ongoing process that enables the company to understand what the consumer needs are. Philips works on consumer insights to develop innovative products which work as health-enablers while removing the hassle from the chores.

Today’s working professionals have it all, which comes at a heavy price - high levels of stress, long working hours and a sedentary lifestyle leading to new-age ailments such as hypertension, blood pressure and heart disease at an early age. Fortunately, people are increasingly becoming conscious of this fact and are trying to maintain a healthy lifestyle. In such a scenario, people are looking at companies to provide simpler solutions to their day-to-day problems.

Recognising this consumer insight, corporates are continuously innovating to make life simpler, healthier and hassle-free for consumers. For example, in the domestic appliances segment, Philips recently introduced a juicer that doesn’t call for slicing, coring or chopping fruits beforehand. Besides, the juicer extracts 70 per cent more juice.

What kind of innovation does it take to get your message across?

The dynamics of marketing has undergone a change. Recognising this, Philips has adopted the experiential marketing route to stimulate the consumers in an active manner, in a personalised environment.

For example, the Philips Intelligent Water Purifier has been brought to life though its Water Experience Centres. Through these, customers get the opportunity to touch-feel-use, and interact with the product, learning more about its functioning and its purification technology. The centres have a pillar unit with a functional unit that allows actual dispensing of water. Some also have an LCD TV and DVD which demonstrates the features, advantages and benefits of the product. It has been on display in many major shopping malls and retail outlets. We provide live demonstration of the product features to the consumers which help them experience the product benefits.

Our go-to market strategy includes a 360-degree marketing mix. Radio was very effectively used. There was a continuous burst for six weeks on one of the leading FM stations across key metro cities in India. Providing benefits of consumption of pure water at regular intervals based on the well-known tip of drinking eight glasses of water a day brought an immediate connect and recall with listeners. The station ran interesting contests and garnered huge response.

Also, we organised roadshows, club activities and residential engagement programmes in some metros. Demonstrations and special offers were given on the spot for those who place an order immediately. These garnered huge positive response and aided in positive word of mouth.

How have you changed your ad campaigns to suit your image?

Our advertising campaigns aim at strengthening the company’s brand positioning of simplicity. Philips has global teams which help in conceptualising the advertising keeping the brand promise and character in mind. The concepts are fine-tuned by weaving in country-specific flavours and local consumer insights. We have separate TVCs for all product categories. For instance, the brief for developing TVC on the water purifier was to clearly tell consumers that Philips’ water purifier will offer them complete peace of mind - the purification chore is taken out of their hands.

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