Achieving excellence in quality by transforming the culture
Retaining and Increasing Brand Loyalty and Reputation
1. Retaining and Increasing Brand Loyalty
and Reputation
Carlos de Castro
Head of Quality, BG Coffee, Consumer Lifestyle
June 2011
1
2. 2
Outline
• Who we are
• Measuring & Focusing
• Targeting & Reaching
• Safeguarding the Brand &
Converting Detractors
3. We are a global company of
leading businesses creating
value with meaningful
innovations that improve people’s
health and well-being
4. 4
Founded in 1891
Headquartered in Amsterdam, the Netherlands
Sales over EUR 25.4 billion in 2010 (USD 33.8
billion)
33% of sales generated in emerging markets
Globally recognized brand (world top 50)
Our brand value doubled to $8.7bln since 2004
119,000 employees
Sales and service outlets in over 100 countries
€1.6 billion investment in R&D, 6% of sales
50,000 patent rights – 36,000 registered trademarks –
63,000 design rights
5. Enabling health and well-being
Where we live, work and play
Philips Healthcare
Philips Lighting
Philips Consumer Lifestyle
36% 34%
30%
6. The world’s 42nd most valuable brand in 2010
Brand value doubled since 2004
4.4
5.9
6.7
7.7
8.3 8.1
8.7
2004 2005 2006 2007 2008 2009 2010
A strong brand drives sales
A significant amount of sales is attributable
to the brand alone:
• Healthcare 29%
• Consumer Lifestyle 24%
• Lighting 21%
High brand value growth
With 7% in 2010, Philips outpacing the
average value increase of 4% shown by
other brands
Strong internal brand
82% of employees are “proud to work for
Philips”
Value of the Philips brand*
USD billions
* Source: Interbrand Brand Valuation 2010
7. Consumer Lifestyle
€8.9
Billion sales
in 2010
17,000+
People employed
worldwide
4%
of sales invested
in R&D in 2010
Philips Consumer Lifestyle
Businesses Geographies
Personal
Care
Health &
Wellness
Domestic
Appliances
Television Lifestyle
Entertaine
ment
Mature
Markets
60% 40%
Emerging
Markets
Coffee
8. A strong position in emerging markets
Emerging markets represent
33% of sales
Target 2015 at least 40%
High corporate brand equity1
Consistently among the top-ranking
players:
India: top 10%, China: top 10%,
Russia: top 40%, Brazil: top 10%
Championing growth with
dedicated strategies
Based on local market insights,
supported by increased marketing
investments
1 Source: Consumer Heart BEAT brand equity study 2010
9. Creating meaningful innovations
Improving lives in new ways
Gain deep insights
by requiring end-user input at every stage
Transform insights into
innovations
by combining the different disciplines
“Learn fast, fail cheap”
by assessing value potential early
Lead in open innovation
by working in a spirit of open innovation
11. 1
Outline
• Who we are
• Measuring & Focusing
• Targeting & Reaching
• Safeguarding the Brand &
Converting Detractors
12. Close customer relationships
1
Leader
22%
Leader
35%
Co-leader
29%
Co-leader
24%
2008 2010
59%
Customer loyalty
is fundamental to growth and profitability
We monitor our effectiveness
with the Net Promoter Score based on a simple
question:
“Would you recommend us to a friend or
colleague?”
Delivering the WOW
Maintained strong Net Promoter Score with 59% of
our businesses holding industry leadership
positions, up from 51% in 2008
14. “WOW, Philips is making it
easy-to-buy”.
“WOW, Philips really values
me as a customer…”
“WOW, they just sent me a new
one..”
“WOW, this agent was really
helpful…”
“WOW, that was excellent service…”
“WOW, they really understand my
problem”
“WOW, they fixed my TV same day…”
What Does Great Care
Feel Like?
15. Detractor 0 to 6 NEUTRAL 7 & 8 Promoters 9 & 10
How to measure the WOW?
The Power of NPS
16. What did we learn with NPS?
+ Speed and
cost balance
Understanding
expectations
+ Focus and
accountability
17. Internal use only
Cost and Speed
Managing the
consumer
throughout the
“funnel”
Accountability
Awareness and
knowledge must
be translated in
“win promoters
plans”
People focused
Consumers
expectations are
universal
Understanding
What did we learn with NPS?
18. German Consumer
“Extremely competent, very
friendly and understandable
advice”
Spanish Consumer
“Speed in the response. No
silliness (that usually happens
in other technical telephone
services)”
French Consumer
“Listen, speed, skill, kindness”
Dutch Consumer
Thinking, customer service and
solutions
US Consumer
“Friendly, helpful service”
Chinese
Consumer
“Hotline staff able to
answer customer
questions quickly”
Russian Consumer
“Clear Answers”
What did we learn with NPS?
Understanding
19. First Time Right delivers the WOW and the costs
What did we learn with NPS?
Cost and Speed
20. Consumer Care automated NPS dashboard
Monthly automated reporting
• 60 tailored report types in
PDF
• Automated production &
distribution
• >100 owners recipients
On-line access
• Easy Extract Tool
• Daily update
• Single source for analysis to
drive improvement (PDCA)
Accountability
21. 2
Outline
• Who we are
• Measuring & Focusing
• Targeting & Reaching
• Safeguarding the Brand &
Converting Detractors
22. Consumer
Experience
Planning
“Whenever
and
however
I
contact
Philips
I
get
the
same
impression”
“However
I
contact
Philips
I
get
the
same
informa+on”
“Whichever
channel
I
use,
people
are
always
informed
about
my
past
interac+ons
(good
and
bad)
with
Philips”
“Whenever
Philips
contacts
me,
I
get
a
relevant
message”
“Whenever
Philips
contacts
me,
there
is
something
in
it
for
me”
Our strategy from our consumer’s perspective
23. How
do
we
work
together
with
MarkeGng?
What
We
Need
from
Marke/ng
What
We
Do
With
It
• Value
ProposiGon
• Product
strategy
• MarkeGng
strategy
• Global
MarkeGng
AcGvaGon
Plan
• Local
MarkeGng
AcGvaGon
Plans
• Consumer
journey
mapping
to
understand
best
approach
from
the
consumer
perspecGve
• Develop
recommended
consumer
care
strategy
and
service
strategy
• IdenGfy
channel
capabiliGes
and
the
best
way
to
realize
objecGves
• IdenGfy
CRM
opportuniGes
• Develop
a
proposed
approach
for
driving
consumer
product
registraGons
23
24. 24
Example of Colaboration MKT-Consumer Care:
Robust Collection – range of high end Kitchen Appliances introduced in
Germany/Austria, France, UK and Russia in September 2009 and in Italy, Spain,
Portugal, Netherlands, Belgium, Norway, Sweden, Greece in March 2010
Euro 399
Euro 149
Euro 349 Euro 299
Euro 219
25. 2
Outline
• Who we are
• Measuring & Focusing
• Targeting & Reaching
• Safeguarding the Brand &
Converting Detractors
26.
27. 2
• February
2001
-‐
introducGon
Senseo
• Unique
partnership
with
Sara
Lee
(currently
17
different
Senseo
coffee
pods)
• World
wide
sales
reaching
almost
25
million
appliances
• In
Netherlands
>
6
billion
cups
of
coffee
sold
• Since
2008
produced
in
Poland,
conGnuous
renovaGon
28. Senseo Latte Select
• First Senseo which can make fresh milk recipes!
• One of the growth drivers for Coffee
• Launched in testing countries in Sep 08
• Introduction in two waves in four countries
• NPS triggered Kaizen workshops and DFSS projects
• Consumer feedback is very positive
30. Actions led by the NPS team
• NPS team involved all areas on a common approach and
using Design For Six Sigma methodology
• Continuous Improvement based on Consumer Feedback:
– Construction improvements on “easy to clean”
– Intense communication to consumers: call center,
dedicated Senseo website, in-box communication,
letters from service centers
• Design Improvement:
– New technological solutions for milk frothing
– Applied not only in this product but expanded to
automatic coffee machines
